China top-3 handset ODMs receiving less orders from 4 major brands in 2020, says Digitimes Research

Peyton Cheng, DIGITIMES Research, Taipei 0

China's top-three handset ODMs - the Wingtech Group, Huaqin Telecom Technology and Longcheer - are expected to ship a total of 183 million ODM models to the world's four major brand vendors in 2020, decreasing 15.28% from the 216 million shipped a year earlier, Digitimes Research estimates.

The four handset brands - Samsung Electronics, Huawei, Xiaomi and Oppo - have been outsourcing most of their entry-level to mid-tier smartphone models priced below CNY2,000 (US$283) to the three ODMs.

The four brands are reducing ODM orders to their production partners this year as their own shipments will be affected by the coronavirus pandemic. Digitimes Research expects the combined global smartphone shipments of the four vendors will decrease 106 million units or 14.5% on year to 629 million units in 2020.

Wingtech has a high proportion of orders from clients other than those four. Huaqin's orders are spread among clients more evenly than Longcheer, which relies heavily on orders from Xiaomi.