Smartphone shipments from Original Design Manufacturers/Independent Design Houses (ODMs/IDHs) declined 5% YoY in 2022 due to economic pressures and weaker demand from China and Europe.
The YoY decline of ODM/IDH companies shipments was driven by weak performance from Oppo Group, Transsion Group, Lenovo Group and HONOR, a report from Counterpoint said.
However, the contribution of ODMs toward smartphone shipments has been increasing as was witnessed that the proportion of ODM shipments in Vivo rose rapidly in 2022 after the brand kicked off its cooperation with Huaqin and Longcheer, the report said.
Longcheer, Huaqin, and Wingtech , also known as the ‘Big Three’, continued to dominate the competitive landscape of the global smartphone ODM/IDH industry in 2022. Accounting for 76% of the global ODM/IDH smartphone market in 2022 compared with 70% in 2021.
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“And while Longcheer’s shipments surged in 2022 due to orders from Xiaomi and Samsung. Huaqin managed to remain one of the leaders among ODMs due to its diversified client portfolio and an increase in orders from Vivo. In contrast, Wingtech saw only a modest YoY increase in shipments, as it continues to view smartphone ODMs as only one component of its overall ODM business””, Senior Research Analyst Ivan Lam said.
The report also shared that while China’s manufacturing sector has been recovering after restrictions in the country were lifted, smartphone OEMs are investing heavily in India. Meanwhile EMS companies are expanding their assembly lines to India, Southeast Asia and other other regions.
