View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Software
April 2, 2013

Rise of smartphones challenges manufacturers: report

Suggests outsourced manufacturers focus on core capabilities

By CBR Staff Writer

Outsourced manufacturers have been witnessing new challenges in the manufacturing of mobile handsets, mainly due to smartphone dominance which has overturned earlier models of design and production outsourcing, according a report by iSuppli.

In addition, handset brands that have conventionally relied more on outsourced manufacturers for lower-end feature phones are now focusing on internal production for their smartphones, ultimately challenging outsourced manufacturers.

IHS iSuppli Global OEM Manufacturing & Design market tracker report revealed that in 2012, most mobile phones were made in-house by original equipment manufacturers, over mobile phones produced by outsourced manufacturers.

During the year, in-house OEMs accounted for 73.4% of all mobile phones produced in 2012, down from 74.5% in 2011, mainly due to Apple’s move to continue to outsource iPhones manufacturing to electronic manufacturing services (EMS) providers.

EMS providers were responsible for 19.6% of global mobile phone production, reporting a decline from 20.1% registered in 2011, over BlackBerry’s dull performance in the smartphone segment.

However, original design manufacturers (ODM) reported a 7% rise in shares during 2012 compared to 5.5% in 2011. IHS anticipates that by 2016, in-house OEM handset production would capture 72.1% share, compared to EMS share of 21.1% and ODM with 6.7% share.

According to the report, OEMs have been scaling back their deployment of outsourced manufacturers as many struggling brands look to optimise product portfolios toward smartphones.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU