Driving Innovation: Direct Imaging vs. Conventional Exposure
It’s Only Common Sense: Selling to Today's Generation of Buyers
Dan’s Biz Bookshelf: ‘Believe in Better'
Smartphone Assembly Volumes Drop 6.2% in the Q4 Hot Season
March 25, 2019 | IDCEstimated reading time: 2 minutes
According to the latest results from the International Data Corporation (IDC) Worldwide Smartphone Qview, due to weakening channel demand, worldwide smartphone ODM/EMS assembly shipment volumes dropped 6.2% year over year during the fourth quarter of 2018 (4Q18) with total shipments of 356.7 million.
"Longer duration of smartphone usage has led to slow demand in the hot season, causing global smartphone production to drop in 4Q18," said Sean Kao, senior research manager with IDC's Worldwide Smartphone ODM Research Group. "Worldwide smartphone ODM/EMS assembly shipment volumes showed a year-over-year decrease of 6.2% and only a slight quarter-over-quarter growth of 0.3%."
With many assembly factories having huge inventory on hand, component suppliers are likely to receive no orders in 1Q19 and face financial distress due to inventory pileup and funding shortage. On the other hand, first-tier ODMs will transfer their resources to different customers such as HMD, OPPO, Samsung, due to adjustment of outsourcing policy by Huawei and Xiaomi.
Looking ahead, IDC expects smartphone ODM/EMS assembly volumes to gradually recover after slowing in 1Q19. Beyond 2019, IDC expects lengthening life cycles, caused by a lack of new features, better quality of low-tier products, expectation of slow economic growth, and deferred purchases in anticipation of 5G products will continue to have a negative impact on developed markets. In addition, high market and industrial concentration rates will weaken low-tier vendors' ability to adjust component inventory. Smartphone component suppliers may therefore face drastic changes in demand from manufacturers.
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 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 that activates and engages the most influential technology buyers.
Share on:
Suggested Items
Horizon Sales Celebrates 10 Years of Exceptional Service by Sales Leader David Smith
07/02/2025 | Horizon SalesHorizon Sales, a premier manufacturers’ representative and distributor for the electronics assembly industry, is proud to announce that David Smith is celebrating 10 years with the company this month.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
06/27/2025 | Nolan Johnson, I-Connect007While news outside our industry keeps our attention occupied, the big news inside the industry is the rechristening of IPC as the Global Electronics Association. My must-reads begins with Marcy LaRont’s exclusive and informative interview with Dr. John Mitchell, president and CEO of the Global Electronics Association. For designers, have we finally reached the point in time where autorouters will fulfill their potential?
Reflections and Priorities: An Update to I-Connect007 Readers
06/24/2025 | Marcy LaRont, I-Connect007The electronics and manufacturing industry is evolving rapidly—with new technologies, deeper global connections, and a growing drive toward sustainability. To reflect these changes and our place in this dynamic space, we’re refreshing our brand.
The Knowledge Base: Building the Workforce of Tomorrow With EMAC
06/24/2025 | Mike Konrad -- Column: The Knowledge BaseAs the electronics manufacturing industry races to meet rising global demand and technological complexity, the need for a highly skilled, future-ready workforce has never been greater. At the forefront of addressing this challenge is The Electronics Manufacturing & Assembly Collaborative (EMAC)—a national initiative dedicated to strengthening the talent pipeline through strategic collaboration with SMTA, education, and government stakeholders.
IPC Rebrands as Global Electronics Association: Interview With Dr. John W. Mitchell
06/22/2025 | Marcy LaRont, I-Connect007Today, following a major announcement, IPC is embracing the rapid advancement of technology with a bold decision to change its name to the Global Electronics Association. This name more accurately reflects the full breadth of its work and the modern realities of electronics manufacturing. In this exclusive interview, Global Electronics Association President and CEO Dr. John W. Mitchell shares the story behind the rebrand: Why now, what it means for the industry, and how it aligns with the organization’s mission.