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FRAMINGHAM, MA – Worldwide smartphone ODM/EMS assembly shipment volumes increased 7.6% sequentially during the third quarter, with total shipments of 358 million units, according to IDC. The increase was largely the result of tier-one vendors moving quickly into lower-priced markets, the firm says.

"With downstream tier-one brand vendors aggressively developing the lower price segment of worldwide markets, the first-tier ODM and EMS smartphone manufacturers enjoyed increases in shipments," said Sean Kao, senior research manager with IDC's Worldwide Smartphone ODM Research. "An increasing percentage of the world’s smartphone production is concentrated within the top 10 smartphone assembly manufacturers, and, as a result, the percentage of the market this group owns increased from 74.3% in the second quarter to 78.8% in the third quarter."

To get a cost advantage for low-tier product lines and keep internal R&D resources for 5G smartphones, Samsung, LG, Nokia, and OPPO are increasing ODM percentages. First-tier Chinese ODMs such as Wingtech, Huaqin, and Longcheer will become critical actors in the competitive dynamics of the worldwide smartphone industry.

IDC expects smartphone ODM/EMS assembly volumes to increase in the fourth quarter due to rising demand in the upcoming hot season and the launch of 5G SoC chip smartphones.

 

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