According to the latest report released by market research agency Counterpoint Research, in 2019, although the smartphone market size shrank by 2% year-on-year, ODM orders soared by 18%. This result is mainly due to Samsung, LG Electronics, Xiaomi, OPPO and Realme delivering more and more mobile phone orders to outsourcing manufacturers.
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The report states that ODM and IDH shipments have increased by 4% compared to the previous year. In this regard, industry analysts said that as major mobile phone manufacturers have successively outsourced the design and production of smart phones, the proportion of ODM products has increased.
It is worth mentioning that the growth of the ODM and IDH markets in 2019 will continue to be led by Wingtech, Huaqin Communications and Longqi Technology. In view of the gradual consolidation of this market segment, the market share of the three companies also increased from 52% in 2018 to 68% in 2019.
In particular, Wingtech surpassed Huaqin for the first time in the world because it won orders from major mobile phone manufacturers such as Samsung; however, as Xiaomi transferred part of its IDH business from Wingtech to Longqi This makes the latter surpass the former in the field of smart phone IDH.
For Huaqin Communications, despite its main customer Huawei reducing ODM orders, the company has achieved double-digit growth since the second half of 2019.
In addition, due to increased orders from telecom operators and overseas OEM companies in 2019, ODMs such as Shenzhen Tianlong Mobile also achieved positive growth.
At the same time, Counterpoint Research stated that 2020 will be the breakthrough year for 5G smartphones. However, the uncertainty caused by the corona virus outbreak and the more concentrated smartphone market in the first half of the year will make ODM / IDH competition more intense. .
