2020 Smart Hardware Industry ODM Report: Huaqin Smartphone Shipments Reach 162 Million Units

In short, smartphone ODM manufacturers have accumulated rich experience in designing and producing small and highly integrated mobile phone products, as well as mobile products based on ARM chip architecture. With the trend of thinner and lighter notebook products, diversified ecosystems, massive data processing and low power consumption, smartphone ODM manufacturers are expected to have more advantages in product design.

According to Counterpoint, "Since thin and light notebooks and smartphones have many overlapping manufacturing materials, smartphone ODM manufacturers also have more advantages in material procurement. We expect that smartphone ODM manufacturers represented by Huaqin Technology will continue to increase their share in the notebook market."

This is even more true in the tablet computer market. Among the top five tablet computer ODM/OEM manufacturers in the world, Huaqin, Wingtech and Longcheer all rank in the top five in terms of shipments, and the gap between them and Compal and Foxconn is getting smaller and smaller.

Among them, Huaqin is the main partner of Amazon and Lenovo. Currently, Huaqin has also begun to provide ODM tablet services for Samsung and will ship them in 2021. 

For example, in the smart watch and TWS headset market, the top manufacturers in terms of shipments are Luxshare Precision, Quanta, Huaqin, Pegatron, Compal, and Longcheer. Among them, Luxshare Precision mainly benefited from Apple orders, while Huaqin, with the help of orders from customers such as vivo, saw its shipments increase by 143% year-on-year in 2020, exceeding 10 million units.

3. The scale effect of the platform has been realized: helping the rise of domestic supply chains

From the above cases, we can see that the current domestic first-line ODM leading manufacturers, Huaqin, Wingtech, and Longcheer, driven by technology and supported by first-line high-quality customers, have long since successfully transformed from single mobile phone ODM manufacturers to platform-based enterprises, and have achieved significant results in the new market. Behind this is the verification of these manufacturers' technology and production capacity.

It can be foreseen that Huaqin, Wingtech and Longcheer will have more advantages in future market competition with their technological accumulation in the field of mobile hardware and professional design capabilities of customized products. 

In fact, the most important thing that cannot be ignored is the contribution made by leading domestic first-tier ODM manufacturers to the domestic supply chain. Looking back at the development of the domestic smartphone industry over the past decade, before Huawei's mobile phone business encountered obstacles, the world's first-tier mobile phone brands were Samsung, Huawei, Apple, Xiaomi, OPPO and vivo, of which four were domestic manufacturers. The rise of domestic mobile phone manufacturers undoubtedly led to the rise of the domestic mobile phone industry chain.

The same is true for ODM manufacturers. As the shipment volume of domestic ODM manufacturers increases rapidly, companies such as Huaqin, Wingtech, and Longcheer have also supported the development and even rise of many domestic supply chain manufacturers, such as CIS manufacturer GalaxyCore, RF manufacturer Zhanshengwei, screen manufacturers BOE and TCL Technology, and this support has expanded from the initial peripheral components to core components!

It is understood that it is quite difficult for small and medium-sized suppliers to directly become first-tier mobile phone brand suppliers. In this case, ODM manufacturers are more willing to give these suppliers opportunities, help them verify their products, and even guide their R&D and design, thereby helping them to upgrade their technology and production capacity. It can be seen that leading ODM manufacturers play a very important role in the localization of the supply chain!

The rapid expansion of production capacity of first-tier ODM manufacturers such as Huaqin, Wingtech, and Longcheer has also contributed to the rise of domestic supply chains. In particular, after the first-tier ODM manufacturers have replicated their technology and production capacity advantages in the mobile phone industry to new markets such as laptops, tablets, smart watches, and TWS headphones, they will further drive the rapid development of more domestic supply chain manufacturers!