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Home > Communications > Wireless > Components/Equipment
Mobile Handset Outsourcing: Market Analysis and Forecasts 2006-2011
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| Published Date:
March 2006
Published By:
Visiongain
Page Count:
149
Order Code:
R155-164
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- Chapter 1 Executive Summary
- 1.1 Outsourcing Prevalent in Mobile Handset Manufacturing
- 1.2 Current Market
- 1.3 Shifting Dynamics
- Chapter 2 2 Introduction
- Chart 2.1: Top Seven Handset Manufacturers by Shipments, 2005
- 2.1 What is Outsourcing?
- 2.2 Key Definitions
- 2.2.1 Defining an OEM
- 2.2.2 Defining an ODM
- 2.2.3 Defining EMS
- 2.2.4 ODM and EMS - Blurring Boundaries
- Table 2.1: EMS and ODM Comparison
- 2.5 Methodology
- 2.6 Focus of this report
- Chapter 3 Mobile Outsourcing Overview
- 3.1 History of Outsourcing
- 3.2 Why Outsource?
- Chart 3.1: Reasons for Outsourcing
- 3.2.1 Drivers for Outsourcing
- 3.2.1.1 Reduce and Control Operating Costs
- 3.2.1.2 Improve Company Focus
- 3.2.1.3 Gain Access to World Class Capabilities
- 3.2.1.4 Free Resources for Other Purposes
- 3.2.1.5 Resources Not Available Internally
- 3.2.1.6 Reduce Time to Market
- 3.2.1.7 Accelerate Re-engineering Benefits
- 3.2.1.8 Function Difficult to Manage
- 3.2.1.9 Share Risks
- 3.2.2 Outsourcing Challenges
- Table 3.1: Outsourcing Challenges
- 3.2.2.1 Loss of Control
- 3.2.2.2 Proprietary Information
- 3.2.2.3 Need for Tight Management Practices
- 3.2.2.4 Long Distances for Travel and Communication
- 3.2.2.5 Time Difference and Language Barriers
- 3.2.2.6 Need to Match EMS provider with OEM needs
- 3.2.2.7 Political Risks
- 3.3 Outsourcing Decision Making Considerations
- Table 3.2: Considerations for Outsourcing Decision Making
- 3.3.1 Cost
- 3.3.2 Direct Benefits
- 3.3.3 Indirect Benefits
- 3.3.4 Risk
- 3.4 Achieving Success with Outsourcing
- Chart 3.2: Top Factors for Achieving Success with Outsourcing
- 3.4.1 Selecting a Vendor
- Chart 3.3: Top Factors in Selecting an Outsourcing Vendor
- 3.5 Outsourcing in the Mobile Industry
- 3.6 Advantages of Outsourcing in the Mobile Industry
- 3.6.1 Cost Savings
- Table 3.3: Typical Cost Savings from Outsourcing Chart 3.4: Average Global Handset Prices
- 3.6.2 Time to Market
- 3.6.3 Manufacturing Expertise
- 3.6.4 Spreading the Risk
- 3.7 Disadvantages of Outsourcing in the Mobile Industry
- 3.7.1 Proprietary Risks
- 3.7.2 Not the Focus of Attention
- 3.7.3 Lack of Specialist Production
- Chapter 4 OEM Strategies
- 4.1 OEM Landscape
- Chart 4.1: Mobile Handset Shipments, 2003-2007 Chart 4.2: % Increase of Handset Sales 2005
- 4.1.2 OEM Market Share
- Chart 4.3: Mobile Handset Shipments, 2005 Chart 4.4: Mobile Handset Market Share, 2005
- 4.2 Nokia Outsourcing Analysis
- 4.2.1 Nokia Profile
- Table 4.1: Nokia Key Financial Indicators, 2005
- 4.2.2 Nokia Outsourcing Strategy
- 4.2.2.1 Nokia: Traditionally Reluctant to Outsource
- Chart 4.5: Nokia Handset Production, Outsourced vs In-house Levels, 2005
- Chart 4.6: Nokia vs. Motorola Operating Margins, 2005
- 4.2.3 Nokia Outsourcing Contracts
- Table 4.2: Nokia's Potential ODM Deals
- Table 4.3: Nokia's LCD Panel Manufacturers
- 4.2.3.1 Nokia in Asia
- 4.2.4 Nokia Joint Ventures
- Table 4.4: Nokia's Joint Ventures
- 4.2.5 Nokia's Overseas Factories
- Table 4.5: Nokia's Overseas Factories
- 4.2.6 Nokia: Future Outsourcing?
- Chart 4.7: Nokia's Falling Operating Margins, 2003 and 2005
- 4.2.7 Nokia Outsourcing Summary
- Chart 4.8: Nokia's Handset Manufacturing Outsourcing as % of Total Output, 2006-2011
- 4.3 Motorola Outsourcing Analysis
- 4.3.1 Motorola Profile
- Table 4.5: Motorola Financial Figures, Q4 2005
- 4.3.2 Motorola Outsourcing Strategy
- Chart 4.9: Motorola's Q4 2005 Handset Production by Region
- 4.3.2.1 Motorola: Outsourcing Commodity Technology
- Table 4.6: Motorola Outsourcing Strategy
- 4.3.3 Motorola Outsourcing Contracts
- Table 4.7: Outsourced Motorola Handsets in 2005
- 4.3.3.1 Motorola Overseas R&D
- 4.3.4 Motorola Outsourcing Future
- Chart 4.10: Motorola's ODM Production as % of Total, 2006-2011
- 4.4 Samsung Outsourcing Analysis
- 4.4.1 Samsung Profile
- 4.4.2 Samsung Outsourcing Strategy
- 4.4.3 Samsung Outsourcing Future - Changing Policy?
- Chart 4.11: Samsung Market Share Stagnation 2004-2005
- Chart 4.12: Samsung Outsourcing as % of Total Production Forecast, 2006-2011
- 4.5 Sony Ericsson Outsourcing Analysis
- 4.5.1 Sony Ericsson Profile
- Table 4.8: Sony Ericsson 2005 Financial Facts
- 4.5.2 Sony Ericsson Outsourcing Strategy
- 4.5.2.1 Sony Ericsson: Equal Share
- Chart 4.13: Sony Ericsson's Manufacturing Production
- 4.5.2.1.1 Manufacturing Synergy
- 4.5.3 Sony Ericsson Outsourcing Deals
- 4.5.4 Sony Ericsson Outsourcing Future
- Chart 4.14: Sony Ericsson Outsourcing as % of Total Production Forecast, 2006-2011
- 4.6 LG Outsourcing Analysis
- 4.6.1 LG Profile
- 4.6.2 LG Outsourcing
- 4.7 BenQ-Siemens Outsourcing Analysis
- 4.7.1 BenQ-Siemens Profile
- 4.7.2 BenQ-Siemens Outsourcing Strategy
- 4.7.2.1 BenQ: ODM / OEM conflict
- 4.7.3 BenQ Siemens Outsourcing Future
- 4.8 OEM Outsourcing Summary
- Chart 4.15: Proportion of Leading OEM Handsets Outsourced by % of Total Production, 2006
- Chapter 5 ODM/EMS Provider Strategies
- 5.1 ODM Landscape: Emerging Markets Presenting Further Opportunity
- 5.1.1 Operator Opportunities
- 5.1.1.1 Eroding Margins
- Chart 5.4: Average ODM and EMS Profit Margins, 2005
- 5.1.2 Global Outsourcing Market
- Chart 5.1: Revenue Growth Rate of the Outsourcing Industry
- Chart 5.2: Average Value of Outsourcing Contracts, 2004-2005
- Chart 5.3: Global EMS Market Value, 2004-2006
- 5.1.2 Top ODMs and EMS Providers
- Chart 5.5: Top Five EMS Providers (All Industries), 2005 Chart 5.6: Top Five ODMs (All Industries), 2005
- 5.1.3 Importance of the Outsourced Mobile Handset Market
- 5.2 Flextronics
- 5.2.1 Flextronics Profile
- Chart 5.7: Flextronics Net Income, Q3 2005 vs 2004
- Table 5.1: Flextronics Fast Facts
- 5.2.2 Flextronics in the Mobile Handset Industry
- Chart 5.8: Handset Manufacturing as a % of Flextronics Total Revenue
- Table 5.2: Flextronics' Main Handset OEM Customers, 2005
- 5.2.2.1 The Importance of Sony Ericsson
- Chart 5.9: Flextronics Biggest Customers, 2005-2006
- 5.2.2.2 Alcatel and Kyocera Deals: Attracting Smaller Companies
- 5.2.3 Manufacturing Base: A Global Operation
- Table 5.3: Flextronics Operations in India
- 5.2.3.1 Industrial Parks
- Table 5.4: Flextronics' Industrial Parks
- 5.2.3.2 Flextronics' Business Model
- 5.2.5 Flextronics' Future in Mobile Outsourcing
- Chart 5.10: Flextronics' Revenue from Handsets Forecast, 2006-2011
- Chart 5.11: Flextronics' Handset Shipments Forecast, 2006-2011
- 5.3 Foxconn (Hon Hai)
- 5.3.1 Foxconn Profile
- Table 5.5: Hon Hai Turnover 2005
- 5.3.2 Foxconn in the Mobile Handset Industry
- 5.3.2.1 FIH Major Customers
- Chart 5.12: FIH Handset Customers by % of Revenues
- Table 5.6: FIH's Manufacturing Facilities
- 5.3.2.2 Attracting More Customers
- 5.3.3 FIH's Manufacturing Capability
- 5.3.4 FIH Future in Mobile Handset Manufacture
- 5.4 Arima Communications
- 5.4.1 Arima Profile
- Table 5.7: Arima in 2005
- 5.4.2 Arima's Customers
- Chart 5.13: Proportion of Arima Total Output for Sony Ericsson
- Table 5.8: Sony Ericsson Handsets Manufactured by Arima, Q1 2006
- 5.4.2.1 Arima to Receive BenQ Orders?
- 5.4.3 Arima's Manufacturing Capability
- 5.4.4 Arima's Mobile Manufacturing Future
- Chart 5.14: Arima Handset Shipments Forecast, 2005-2007
- 5.5 Compal Group
- 5.5.1 Compal Profile
- Chart 5.15: Compal Group Handset Shipments, 2005
- 5.5.2 Compal Customers
- Table 5.9: Motorola Handsets Manufactured by Compal
- 5.5.3 Compal Manufacturing Capability
- 5.5.4 Compal's Mobile Manufacturing Future Chart 5.16: Compal Handset Shipments Forecast
- 5.6 High Tech Computer (HTC)
- 5.6.1 HTC Profile
- 5.6.2 HTC Customers
- Table 5.10: HTC's Palm Products
- 5.6.2.1 HTC Relationship with Operators
- Table 5.11: HTC Handset Production for OEMs
- 5.6.4 HTC Mobile Manufacturing Future
- Table 5.12: HTC Shipments by Market Segment in Thousands
- Chart 5.17: HTC Handset Shipments Forecast, 2006-2011
- 5.7 Lite-On Technology
- 5.7.1 Lite-On Profile
- 5.7.2 Lite-On: Example of the problems for ODMs in the Handset Industry?
- 5.8 Quanta Computer
- 5.8.1 Quanta Profile
- 5.8.2 Quanta's Customers
- 5.8.3 Quanta Mobile Handset Manufacturing Future
- Chart 5.18: Quanta Handset Shipments Growth, 2004-2007
- 5.9 Chi Mei Communications (CMCS).
- 5.9.1 CMCS Profile
- 5.9.2 CMCS Customers
- Table 5.13: CMCS Handsets for Motorola
- 5.9.3 CMCS Mobile Handset Manufacturing Future
- Chart 5.19: CMCS Handset Shipments Growth, 2004-2007
- 5.10 Elcoteq SE
- 5.10.1 Elcoteq Profile
- Table 5.14: Elcoteq Fast Facts
- 5.10.2 Elcoteq Customers
- Chart 5.20: Elcoteq's Major Customers by Sales, 2005
- 5.10.3 Elcoteq's Manufacturing Bases
- Table 5.15: Elcoteq's Overseas Manufacturing Plants
- 5.10.3.1 Elcoteq as Manufacturing Pioneers
- 5.10.4 Elcoteq's Mobile Manufacturing Future
- 5.11 Cellon
- 5.11.1 Cellon Profile
- 5.11.2 Cellon Customers
- 5.11.3 Cellon - Differentiation through Design
- 5.11.4 Cellon Mobile Manufacturing Future
- Chart 5.21: Cellon Handset Shipments Forecast. 2006-2011
- 5.12 ODM/EMS Provider Summary
- Chapter 6 Major Regions for Handset Manufacture
- 6.1 China and Taiwan
- 6.1.1 China
- 6.1.1.1 Chinese Handset Production
- Chart 6.1: % of Handsets Manufactured in China by Vendor
- 6.1.1.2 Chinese Manufacturers
- Chart 6.2: Handset Market Share in China by %, 2005
- 6.1.1.2.1 Ningbo Bird
- Chart 6.3: Ningbo Bird Handset Shipments, 2004-2005
- 6.1.1.2.2 Lenovo
- 6.1.1.3 Chinese Manufacturing Attributes
- 6.1.1.3.1 Labour: More than Cost Effectiveness
- Table 6.1: Average Manufacturing Costs in China, US and UK, 2004
- 6.1.1.3.2 Chinese Handset Manufacturing Areas - Supply Chain and Infrastructure
- 6.1.1.3.2.1 Northern China
- 6.1.1.3.2.1.1 Tianjin
- 6.1.1.3.2.1.2 Beijing
- 6.1.1.3.2.2 Eastern China
- Table 6.2: Yangtze Delta Advantages
- 6.1.1.3.2.3 Southern China
- 6.1.2 Taiwan
- 6.1.2.1 The Majority of ODMs, Not the Majority of Handset Shipments
- 6.2 India
- Chart 6.4: Indian EMS Industry Value Forecast, 2004-2008
- 6.2.1 Why Handset Manufacture in India?
- 6.2.1.1 Emerging Market
- Chart 6.5: Indian Handset Shipments Forecast, 2005-2008
- 6.2.1.2 Government Schemes
- 6.2.1.3 Labour Force
- 6.2.1.4 Location
- 6.3 Telecoms Companies - Relocating to India?
- 6.4 Disadvantages in Outsourcing to India
- 6.4.1 Poor Existing Infrastructure
- 6.4.2 Poor Electronic Component Supply
- 6.5 Handset Shipments by Region
- Chart 6.6: Handset Shipments by Region, 2006
- Chart 6.7: Handset Shipments by Region, 2011
- Chapter 7 Handset Customisation
- 7.1 Why Customisation?
- 7.1.1 Definition of Customisation
- 7.1.2 The Trend for Customisation
- 7.1.2.1 Shifting Market Dynamics Due to New Technology
- Chart 7.1: Decline in European Operator's ARPU
- 7.1.3 Advantages of Customisation for Operators
- 7.1.3.1 Easy to Use Services
- 7.1.3.2 Better ARPU
- 7.1.3.3 Less Churn
- 7.1.3.4 Differentiation
- 7.1.3.5 Branding and Market Segmentation
- 7.1.3.6 Controlling the Mobile Ecosystem
- Table 7.1: The Mobile Ecosystem
- 7.2 The impact of Customisation for Operators on the Mobile Handset Outsourcing Industry
- 7.2.1 The Outsourcing / Customisation Circle
- 7.2.2 The Impact upon Manufacturers
- 7.2.2.1 Impact on OEMs
- 7.2.2.2 Impact on ODMs / EMS Providers
- Table 7.2: OEMs vs. ODMs on Customisation
- 7.3 Operator Customisation in the Handset Industry
- 7.3.1 Vodafone - Growing its Brand Strength through Own-Brand Handsets?
- 7.3.1.1 Examples of Other Operator Branded Handsets
- Table 7.3: HTC Operator Branded Handsets
- 7.4 Third Party Entrants
- 7.4.1 Market Entry for Microsoft
- 7.4.2 Niche Market - ESPN Mobile
- 7.4.3 Other Third Party Handsets
- 7.4.3.1 Dolce & Gabbana (D&G) Handset
- 7.4.3.2 Vodafone Ferrari Handset
- 7.4.3.3 Aston Martin Handsets
- 7.4.3.4 Elle Glamphone
- 7.5 Customisation Requirements for Handset Manufacturers
- Table 7.4: Key Elements for Customised Handsets
- 7.6 Opportunity in the Customised Model
- Chapter 8 Analysis and Forecasts
- 8.1 The Mobile Handset Market - Drivers for Increased Outsourcing
- 8.1.1 Emerging Markets
- 8.1.2 Handset Customisation
- 8.1.2.1 Operator Customisation
- 8.1.2.2 Third Party Customisation
- 8.2 Outsourcing Future for OEMs
- Chart 8.1: Forecast % of Handsets Outsourced Globally, 2006-2011
- Table 8.1: SWOT Analysis for Outsourcing Handset Manufacturing
- 8.3 Outsourcing Future for ODMs and EMS Providers
- Table 8.2: SWOT Analysis for Handset Manufacturing ODMs and EMS Providers
- Chapter 9 Conclusions and Recommendations
- 9.1 Conclusions
- 9.2 Recommendations
- Appendix A Lead author's profile
- Appendix B About visiongain
- Appendix C Report evaluation form
- Key Companies
- Alcatel
- Amoi
- Apple
- Arima Communications
- Aston Martin
- BenQ-Siemens
- BT
- Catcher Technology
- Cellon
- Chi Mei Communication Systems
- Compal Communications
- Compal Electronics
- Dbtel
- Dolce & Gabbana
- Elcoteq
- ESPN
- Ferrari
- Flextronics
- Formula 1
- Foxconn Electronics
- Foxlink (Cheng Uei Precision Industry)
- France Telecom
- Gradiante
- GSM Association
- HTC
- Huawei Technologies
- iMate
- Jabil Circuit
- Konka
- Kyocera Wireless
- Langchao Group
- Lenovo
- LG Electronics
- Lite-On
- Microsoft
- Motorola
- Ningbo Bird
- Nokia
- Orange
- Palm
- Pan International Industrial
- Panasonic
- Quanta
- QTEK
- Royal Philips Electronics' Mobile Display Systems
- Samsung SDI
- Sanyo
- Sharp
- Silitech
- Sony Ericsson
- Taiwan Green Point
- TechFaith Wireless Communication Technology
- T-Mobile
- Toppoly Optoelectronics
- Virgin Mobile
- Vodafone
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