2018 ODM smart machine or 4.4% will reach 100 million, the proportion of ODM mobile phone industry in the future over 55%

On February 14, Counterpoint, the world's leading research organization, released the Whitepaper on Analysis and Forecast of the Status of the Global ODM / IDH Technology Industry 2017. The report provides a detailed analysis of the current and future forecast of the ODM / IDH industry.

2017 ODM + IDH status analysis:

According to Counterpoint research 2017 statistics, nearly 400 million handsets will be manufactured and manufactured using ODM models, accounting for 26% of all smartphones shipped globally in 2017. ODM shipments are expected to continue to grow in 2018 to reach 440 million, close to 30% of overall handset shipments, will approach or exceed the EMS mode.

The company is located in:

Counterpoint said global mobile phone OEM representatives Samsung and Apple's limited growth, and both production and R & D generally EMS and in-House mode, so with the rise of local mobile phone OEMs, especially Chinese manufacturers, the future of the overall mobile phone Industry outsourcing model shipments will further increase, the long-term forecast will exceed 55% of the overall market.ODM model can help handset manufacturers more effectively control costs, more quickly respond to market changes, it is widely welcomed by OEM players.

Currently, there are two types of representative players adopting ODM: one is Chinese players such as Huawei, Xiaomi, Lenovo, ZTE and TCL, etc. The second category is overseas local brands and local operators brands, while the future international brands such as SONY and LG Will further increase the use of ODM models in products (and more from Taiwan ODM to mainland ODM transfer) .In addition, OPPO, VIVO and other Chinese manufacturers are examining the feasibility of developing outsourced ODM business.

Global Top 5 mobile phone ODM + IDH analysis:

Overall, in 2017, the first two players of handset ODM + IDH handsets, Huaqin and Wentai, both sold close to 80 million units. Both advantages are clear and far ahead. IDH business and Germany mainly focus on Meizu ODM business and overseas assembly factory.Longqi mainly supports product services and eco-chain hardware layout of Xiaomi.Long Long emphasis on overseas ODM market and build their own OEM brand.

Hutchison: As the industry leader in ODM, with the support of long-term customers such as Huawei and Lenovo in 2017 and the addition of new customers such as Xiaomi and LG in 2017, the growth rate has been significantly increased by 36% over 2016.

Wen Tai: The largest proportion of mobile phones in the business and the main focus of large customers, including Xiaomi, Huawei, Lenovo and Meizu. Wenteng's main customer is millet, but more with the millet for the IDH model cooperation; In addition, the high pass is heard Thai strategic partner, Qualcomm products in Wen-tai total shipments accounted for 70%.

And Germany: the previous rise with the Meizu upgrade and firmly in the second camp.Now with the German factory in the overseas production speed and strategic planning is the leading. 2017 and Germany nearly 10 million products manufactured from overseas factories, but These do not belong to the ODM and IDH models and are therefore excluded from our ODM + IDH statistics.

Dragon flag: Reliance on millet rebounded in 2017. Due to the decline in the sales volume of HTC and its overseas brands, the orders from Xiaomi and Lenovo account for more than 80% of Dragon's total business. Very dependent.

Tian Long: Own brand Wiko had previously contributed to the overall business of Tian Long, but fierce competition from competitors in overseas markets in 2017 made it difficult for the weak sales volume to continue to drive Tian Long's business growth overseas expansion, Tian Long from South America And North American operators ODM business is still under development, not enough to make its own brand of candy mobile phone sales temporarily unclear, pending further observation.

Global Top 5 Mobile Phone ODM Perspectives: Overall, more than 300 million handsets were shipped via ODM (Design and Manufacturing) models in 2017. Due to the mature design team and labor force in mainland China, this mode is Most mainland mobile phone OEM companies used.

Global Top 5 Mobile Phone IDH Perspectives: Overall, fewer than 100 million shipments of only the design (also known as IDH) shipments were made in 2017. Longqi and Wentech are the leaders in IDH's business With the cooperation with millet , Wen Tai won the lead in the field of IDH, especially the red rice product line designed by Wen Tai Foundry, which has achieved outstanding results. In the business of Xiaomi, Wen Tai adopted the model mainly for designing products by himself and outsourcing the design to Foxconn or Ying Huada assembled.

Global Tablet ODM / EMS Industry Analysis:

According to Counterpoint's prediction of the 2017 global tablet PC industry, total tablet shipments were about 170 million units, of which ODM contributed 64% and about 120 million units.

Foxconn is clearly the leader in the field of tablet ODM / EMS, Apple's main tablet supplier, the overall shipments of about 30 million.Hundao as a new entrant in recent years, rapid integration of resources to seize Amazon, Lenovo and Huawei 3 major customers to make its flat-panel ODM business by leaps and bounds in 2017 close to 17 million units, ranking second.And 10 million Amazon All new fire 7 hot can not be separated from the hardworking credit Compal 's customers are mostly traditional PC makers.

Global Top 5 ODM / IDH Technology Industry Operating Income Analysis:

Thanks to its outstanding performance in mass-market ODMs such as mobile phones, tablet PCs and NBs, Hutchison has generated revenue of more than 23 billion in 2017. Among them, more than 10 billion mobile phones and over 5 billion flat-panel TVs business.

Wen Tai business model more like millet, emphasis on light assets.Compared with other ODM, Wen Tai phone IDH mode design business accounted for more, so operating income is lower than China Qin.In addition, Wen Tai is not just a traditional ODM foundry Business, as well as other hardware and supply chain finance.But the operating income contribution, it is clear that mobile ODM + IDH business accounted for the largest.

ODM industry trends in the region:

Counterpoint reports that after 2014, with the popularization of smartphones, the rise of Chinese brands and the sensitivity of international brands to the cost of products, OEM customers have shifted their businesses to costumer ODMs in Mainland China, and after 2018, ODM suppliers in mainland China have the advantages of integrated industry chain and cost advantages, almost monopolizing the global technology and mobile ODM industry.

In order to continuously enhance the production capacity (increase manpower and reduce costs) to meet the OEM customers growing production design needs, mainland ODM manufacturers are also advancing with the times, the transfer of their production base: The first way is to the eastern part of the factory transfer of the coastal To the central and western parts of mainland China The second approach is to establish or join assembly lines in Southeast Asia (such as India and Indonesia) to reduce labor costs and reduce tariffs, and to better serve OEM customers.

The global ODM + IDH industry cluster and division of labor are basically formed: Most of the world's ODM industry chain (design, R & D, procurement, component supply, logistics and manufacturing) and ODMs are clustered in mainland China while Taiwan focuses on manufacturing scale Equipment investment and EMS business, as well as serving high-end OEMs. Japan, South Korea and the United States are major suppliers of high-end components. Southeast Asia is dominated by the assembly industry: a large number of assembly plants in India and Indonesia.

ODM technology industry product trends insight:

Mobile phones, computers (including desktops and laptops) and flat-panel businesses account for over 85% of ODMs in technology products, commonly known as the "Big Three." Terminal ODM services such as smartphones, IOTs, and wearable devices currently account for relatively small but Prospects for future growth.

The mobile ODM business looked at the product category for its comprehensive capabilities (funding, R & D, supplier and platform support and integration capabilities), intelligent acoustics for AI acoustics, IoT communications and chip modules, wearable and VR terminals.

Counterpoint-ODM Capabilities Quadrant and Pattern Prediction:

Counterpoint combines ODM technology more than 10 years of research, considering the product, brand, supply chain and quality factors.ODM development model is expected to:

The company is located in:

A mode: Super supply chain and automation advantages + EMS upgrade mode + OEM brand. On behalf of the player Foxconn. Analysts said good, with its own strong supply chain capabilities and stability EMS big customer Apple's support, Counterpoint optimistic about this model and player prospects .

B mode; strong supply chain + new product advantages. On behalf of the players Hua Qin, Wen Tai. Analysts said the fine, due to the mobile ODM field has a stable customer support and expand the success of large-scale product experience, Counterpoint on this model and this player Prospects are good.

Mode C: This mode has the ODM design and manufacturing capacity + OEM brand business. Representative: Tian Long. Analysts said there is uncertainty because of the huge investment in OEM development mode, and the strong competition from Chinese brands.

Mode D: ODM capabilities and supply chain resources in general, or only with IDH business ability, a single product, rely on the mobile phone business. Analysts said the mode business model is limited, only IDH although it can meet the needs of some emerging markets, but not long-term Continued, need to develop new product business as a support.

Finally, the Counterpoint report said that in the ODM development model, the A and B modes are relatively stable.

In the context of the entire ODM science and technology transfer to the mainland, with the rapid growth of smart phones and other technology products, a number of representative ODM players emerged, such as: Hua Qin, Wen Tai, Dragon Flag, Acoustics, etc. At the same time, we also see that OEM customers are increasingly demanding ODMs and they hope that docking from design to mass production will be more efficient and smooth. This will have an impact on the design, procurement, supply and delivery of ODMs , Quality and flexibility, and even more stringent and detailed requirements on the resource allocation and integration capabilities of some IT systems, etc. ODM can provide not only product design and production but also a set of service support system.In addition, because ODM is heavy Assets of science and technology manufacturing industry, the control of capital and cash flow is very harsh, which also continuously improve the entry barrier ODM industry Finally, as a labor-intensive ODM technology industry, how to control and stabilize labor costs is an eternal topic.

2016 GoodChinaBrand | ICP: 12011751 | China Exports