Counterpoint: By 2024, global smartphone outsourcing design will increase to 44%.

Since the peak of smartphone shipments in 2017, the outsourcing design and manufacturing model of ODM manufacturers has continued to surge globally, with their market share expanding in the overall market. According to Counterpoint Research's latest "Global Smartphone ODM Industry Report," by 2024, the outsourced design segment accounted for 44% of global smartphone shipments. As the smartphone market has undergone rapid technological changes, including the transition from traditional feature phones to touch-screen smartphones, smartphone brands increasingly rely on the ODM model to achieve economies of scale. This not only drives growth in the ODM industry but also accelerates industry consolidation, with a significant change in the competitive landscape among ODM manufacturers since 2017. In response to this trend, Neil Shah, Vice President of Research at Counterpoint, said, "ODM manufacturers play a crucial role in the smartphone industry, serving as the key driver in the process of popularizing cutting-edge technology to the mass market. While brand manufacturers introduce advanced technology through in-house R&D for the high-end price segment, the survival of the fittest rule also applies to the ODM sector." The current top ten ODM manufacturers globally (and those further down the rankings) are predominantly led by Chinese companies. Due to the increasing concentration of smartphone brands, the top ODM manufacturers today are completely different from those of a decade ago. Leading companies such as Longcheer, Huaqin, and Wingtech (with the ODM part belonging to Luxshare Precision Industry from 2025 onwards) have achieved significant expansion in scale through smart product design, continuous improvement of product quality, efficient procurement strategies, and a global supplier network supporting the trend of smartphone premiumization. However, as geopolitical tensions escalate, some top ODM manufacturers have started to expand their businesses beyond China to align with their major customers' business expansions outside of China. Ivan Lam, Senior Analyst at Counterpoint, said, "Maintaining a leading position in the industry is no easy task. A company that has been a leader in the industry for over a decade must have a unique survival strategy and strong risk resistance. Of course, external factors may also cause a drastic change in the industry structure a recent example is Wingtech having to sell its product integration business to Luxshare Precision Industry after being sanctioned by the United States. 2025 itself is full of uncertainty, not to mention the sudden impact of U.S. tariff policies." Among these top-tier manufacturers, TINNO Mobile has displayed strong resilience as a persistent competitive force in the market, achieving a 31% performance growth last year. With this momentum, the company is expected to break into the industry's top three in the first half of 2025. Data also shows that Mixowell and EJing have significantly accelerated growth this year through strategic partnerships with emerging brands. Prachir Singh, Senior Analyst at Counterpoint, pointed out, "Collaborating with brand manufacturers remains a core driver of growth. However, the industry now requires ODM manufacturers to enhance their comprehensive capabilities to adapt to the trend of global manufacturing and supply chain diversification." The latest U.S. tariff policies will intensify this trend, and how this will reshape the competitive landscape among ODM manufacturers remains to be seen. They may be forced to transition to an integrated model of "Independent Design House (IDH) + Electronics Manufacturing Service (EMS)" and expand their localized EMS business in 'favorable production' areas such as India and Brazil the impact of this transformation on the ODM competitive landscape is yet to be observed.