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19 Jul 2019

Smartphone Assembly Volumes Drop 10.2% Year Over Year in Q1 2019, According to IDC

FRAMINGHAM, Mass., July 19, 2019 – According to the latest results from the International Data Corporation (IDC) Worldwide Smartphone ODM Qview, due to high inventory, worldwide smartphone ODM/EMS assembly shipment volumes dropped 10.2% year over year during the first quarter of 2019 with total shipments of 297.3 million.

"High inventory both on hand and in the channel, combined with Chinese New Year holiday's shortened work time, caused global smartphone production to drop in 1Q19," said Sean Kao, senior research manager with IDC's Worldwide Smartphone ODM Research Group. "Worldwide smartphone ODM/EMS assembly shipment volumes showed a quarter-over-quarter decrease of 16.7%."

Aside from Huawei, which moved quickly during the quarter to ship products, most component suppliers faced low demand from other first-tier brand vendors in 1Q19. Conversely, first-tier ODMs did begin to prepare and obtain new ODM orders from HMD and Samsung during the quarter.

Worldwide Top 5 Smartphone Assembly Vendors' Shipment Volume Ranking, 2015 - 1Q2019



2015

2016

2017

2018

1Q19

1

Samsung

Samsung

Samsung

Samsung

Samsung

2

Foxconn

Foxconn

Foxconn

Foxconn

Foxconn

3

Pegatron

OPPO

OPPO

OPPO

Flex

4

LG

Pegatron

VIVO

VIVO

VIVO

5

Huaqin

VIVO

Pegatron

Pegatron

OPPO

Source: IDC Worldwide ODM & Display Industry Research Group, May 2019

Notes: The ranking on this list is based on complete knock-down (CKD) assembly, which includes in-house assembly, but excludes design without assembly.

Looking ahead, IDC expects smartphone ODM/EMS assembly volumes to recover to levels comparable to that of 2Q18 after a down first quarter. A key driver for the second half of the year is growth in 5G, especially in China where the government has begun to ask Chinese operators to subsidize 5G smartphones. IDC expects to see silicon competition increase among Qualcomm, Huawei, and Samsung.

IDC Worldwide ODM & Display Industry Research

The object of IDC's Worldwide ODM & Display Research is the compilation of manufacturers who provide ODM and EMS services to their clients – branded vendors. The ODM/EMS manufacturers are in the upstream of the industry supply chain, as indicated by the red mark in Figure 1. ODM/EMS manufacturers include Foxconn, Huaqin, Compal, Quanta, Compal, Wistron, and others. Their clients are branded or white-box vendors, such as Apple, Amazon, Lenovo, Huawei, Oppo, and others.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.





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