It is quite common for smartphone OEMs to outsource the design to some other company. This is usually more true for smartphone manufacturers who cater to budget and low-end phones. A recent report shows which company ships outsources the most.
According to a report by Counterpoint Research, Motorola topped the list of outsourced design shipments in the first half of 2024. Following Motorola, is the Chinese smartphone brand Xiaomi outsourcing 78% of its phones. Its Chinese counterparts, including VIVO, Huawei, HONOR, and OPPO Group are next in line in the same sequence.
Among major players, South Korean smartphone OEM, Samsung, was the top Android brand that uses in-house designs. In the first half of 2024, the ODM product portion of Samsung's smartphone shipments in the first half of 2024 was 22%, dropping from 28% in 2022 in some lower models of Galaxy M and Galaxy A series phones.
Counterpoint also noted that "Samsung is also gradually shifting its China-based ODM production method, which it used to use for manufacturing entry-level models, to its factory production method in India." Additionally, Samsung's share in the sub-$250 market decreased as it is continuously reducing outsourcing, and on the other hand, its share increased in the $250+ segment.
The report also mentions that Samsung has allocated a significant portion of its orders from its ODM partner Huaqin in the H1 of 2023, to Shanghai-based Longcheer this year. Notably, "Longcheer/Huaqin/Wingtech, which are Chinese companies, account for 75% of total shipments, and Longcheer surpassed Huaqin to take first place in the first half of 2024 due to an increase in orders from many Chinese smartphone brand customers in addition to Samsung."
Apple on the other hand did not rely on outsourcing at all, which is understandable since it serves the premium smartphone category.
1 Comment - Add comment