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Electronics Production |

EMS to challenge ODMs’ hegemony in mobile PCs?

EMS-providers are set to make inroads into the dominant position of ODMs in the mobile PC market, states market researcher iSuppli. The EMS share of shipments i projected to more than double from 2009 to 2014.

While ODMs are expected to continue accounting for the vast majority of mobile PC shipments in the coming years, EMS companies will experience a rapid rise in volume, with their share of worldwide shipments rising to 8.6%, iSuppli predicts. During the same period, the ODM share will decline slightly to 84.6%. “Taiwanese ODMs such as Quanta and Compal long have held sway in the mobile PC market, manufacturing nearly all mobile PCs sold by the major computer brands, including Hewlett-Packard Co. and Dell Inc.,” said Jeffrey Wu, senior analyst for EMS & ODM at iSuppli. “However, the continued expansion in the mobile PC market is yielding lucrative growth opportunities that are attracting new competitors to the manufacturing sector, particularly EMS providers. The EMS providers already have changed the highly competitive mobile-PC supply chain and will exert even greater influence in the future”, he continues in saying. Foxconn and Flextronics muscle in on mobile PCs Already in 2007 / 2008, heavyweight EMS providers such as Foxconn and Flextronics began to look at the potential offered by the mobile PC ODM business. Both increased their R&D staff and gained significant manufacturing programs (starting in 2009). iSuppli believes that for EMS providers to further expand their share in the mobile PC industry, it is essential that they develop original design capabilities, a service offering highly sought after by OEMs hoping to reduce their R&D expenses.

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March 28 2024 10:16 am V22.4.20-1
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