Counterpoint: ODM/IDH smartphone shipments to drop 6% in H1 2023

Counterpoint: ODM/IDH smartphone shipments to drop 6% in H1 2023

According to the latest report from Counterpoint, smartphone shipments from original design manufacturers/independent design houses (ODM/IDHs) fell 6% year-on-year in the first half of 2023.

Senior research analyst Shenghao Bai said: "The year-on-year decline in ODM/IDH companies' shipments in the first half of 2023 was caused by the weak performance of Samsung, Xiaomi and Lenovo Group. However, the rise of vivo, Honor and Transsion Group offset part of the decline."

Huaqin, Longchi and Wingtech continue to dominate the competitive landscape of the global smartphone ODM/IDH industry in the first half of 2023. These three companies, also known as the "Big Three", accounted for 76% of the global ODM/IDH smartphone market in the first half of 2023.

Commenting on the performance of the major ODMs, Senior Research Analyst Ivan Lam said: "The 'Big Three' saw declines in the first half of the year. Huaqin led the way with a relatively small decline. Longcheer's shipments were affected by Xiaomi's performance, but the surge in vivo orders mitigated the impact. Wingtech's decline was similar to Longcheer's, but it still received a small number of orders from Samsung, Xiaomi and OPPO Group."

He added: "Among the second-tier ODMs, Tinno's shipments continue to grow steadily as it has major operators and a loyal local customer base. Transsion Group's good performance has brought tangible benefits to MobiWire and Innovatech, which have cooperated with it for many years. Their product offerings and supply chains give the group cost and quality advantages in its main target markets."

Talking about global manufacturing trends, Lam said: "India is now the second largest mobile phone manufacturing hub due to heavy investments by OEMs, ODMs and component companies. India is expected to export around 22% of its total assembled mobile phones by 2023. However, in the long run, China's manufacturing and supply chain will still maintain its important role."

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