By Kate Yuan

(JW Insights) Oct 8 -- Huaqin (华勤), Longcheer (龙旗) and Wingtech (闻泰) continued to dominate the competitive landscape of the global smartphone ODM/IDH industry in the first half of 2023. The companies, also known as the ‘Big 3,’ accounted for 76% of the global ODM/IDH smartphone market in H1 2023. Smartphone shipments from ODMs/IDHs declined by 6% year-on-year in the first half of the year, according to the latest report from Counterpoint Research.

Shenghao Bai, senior research analyst of Counterpoint, said, “The decline in ODM/IDH companies’ H1 2023 shipments was driven by Samsung, Xiaomi and Lenovo Group’s weak performance. However, the rise of vivo, HONOR and Transsion Group offset part of the decline.”

“The ‘Big 3’ witnessed declines in the first half. Huaqin experienced a relatively smaller decrease and took the leading position. Longcheer’s shipments were impacted by Xiaomi’s performance but eased by the soaring orders from vivo. Wingtech saw similar declines as Longcheer but still received modest orders from Samsung, Xiaomi and OPPO Group,” said senior research analyst Ivan Lam.

Counterpoint predicts the penetration rate of ODMs is expected to further increase. From 2021 to 2025, the penetration rate of ODM models is projected to rise from 37% to 42% in the smartphone industry. The penetration rates in sectors such as laptops, tablets, and IoT will also see further growth.

At the same time, Chinese brands such as Xiaomi, OPPO, and vivo are actively expanding their overseas businesses, while Huaqin, Longcheer, and Wingtech will continue to expand their overseas production capacities.

Furthermore, new smart devices including smartwatches, TWS, VR/AR products, and automotive electronics are entering a high-growth phase. Currently, the penetration rate of ODMs in AIoT and other products is relatively low, indicating significant room for development.