LUXSHARE-ICT(SZ:002475) Zhi Tong Cai Jing·2025-10-23 10:37Core Insights - The global ODM smartphone shipment volume is expected to grow by 7% year-on-year in the first half of 2025, indicating a robust market outlook for ODM players [1][5][6] - Huaqin and Longcheer maintain their leading positions in the industry, while Tianlong Mobile has risen to third place, showcasing a strong competitive landscape [1][5] - The integration of Wistron’s ODM business into Luxshare Precision requires time, resulting in Luxshare currently holding the fourth market position [1][5] ODM Market Dynamics - In the first half of 2025, global smartphone shipments increased by 2%, while outsourced design orders rose by 7%, reflecting OEM manufacturers' strategy to enhance ODM outsourcing to tackle market competition and cost pressures [1][6] - ODM-designed smartphones accounted for 43% of total global shipments, marking the highest level since 2019 for the same period [1] Competitive Landscape - The ODM industry is undergoing a restructuring phase, with Huaqin and Longcheer solidifying their dual stronghold, while Luxshare Precision is working to stabilize its market position after acquiring Wistron’s ODM clients [5] - Other manufacturers like Mabowell and Yijing have shown fluctuations in performance based on major client orders, while Zhongnuo is expected to recover growth in the second half of the year despite a decline in the first half [5] Business Diversification and Innovation - ODM manufacturers are actively exploring new business areas such as customized products, LED, and AIoT, although these new ventures are unlikely to yield significant short-term profits [5] - There is a continuous increase in R&D investment and manufacturing upgrades among ODM firms to adapt to ongoing hardware upgrades in smartphones and to expand into related sectors like smart automotive and wearables [5]