It is quite common for smartphone OEMs to outsource their designs to other companies. This is usually more for smartphone manufacturers that target budget and low-end phones. A recent report shows which company is shipping the most units. According to a report by Counterpoint Research, Motorola topped the list of outsourced design shipments in the first half of 2024. Following Motorola is Chinese smartphone brand Xiaomi, which outsources 78% of its phones. Chinese peers including VIVO, Huawei, HONOR and OPPO Group are also in the same sequence. Among the major manufacturers, South Korean smartphone OEM Samsung is the Android brand with the highest proportion of self-designed products. In the first half of 2024, ODM products accounted for 22% of Samsung's smartphone shipments. In some lower models of Galaxy M and Galaxy A series phones, the proportion of ODM products decreased from 28% in 2022 to 22% in the first half of 2024. Counterpoint also pointed out: "Samsung is also gradually shifting from the Chinese ODM production method used to produce entry-level models to the Indian factory production method. In addition, as Samsung continues to reduce outsourcing, its share in the market below US$250 has declined, while on the other hand, its share in the market above US$250 has increased." The report also mentioned that Samsung has allocated most of its ODM partner Huaqin's orders for the first half of 2023 to Shanghai Longqi this year. It is worth noting that "the shipments of Longqi/Huaqin/Wingtech, these Chinese companies, accounted for 75% of the total shipments. Due to the increase in orders from many Chinese smartphone brand customers except Samsung, Longqi surpassed Huaqin in the first half of 2024 and ranked first." Apple, on the other hand, does not rely on outsourcing at all, which is understandable as it serves the premium smartphone category. From Chinese Industry Information Station |
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