Motorola, Xiaomi, and Vivo Outsource Designs While Apple Stays In-House
Top Outsourcers in Smartphone Design – Motorola: Leads with 90% of its smartphones designed by third-party firms (H1 2024) – Xiaomi: Follows with 78% of its designs outsourced, focusing on cost-effective production – Vivo: Outsources 52% of its designs, balancing in-house and external partnerships
Rising Trend in Outsourced Designs – Counterpoint Research projects a 6% growth in outsourced smartphone designs in 2024 – Driven by demand for budget and mid-range smartphones, especially among Chinese brands – Outsourcing allows faster launches and competitive pricing to meet market demands
Apple and Samsung's Unique Approach – Apple: Remains 100% committed to in-house design for all iPhones, ensuring full control over quality – Samsung: Outsources only 22% and is reducing this, relying more on its factories in India for budget devices – Samsung’s shift focuses on maintaining quality and reducing costs as it targets emerging markets
Outsourcing Among Other Brands – Huawei: 44% of designs outsourced, maintaining a mix of in-house and third-party designs – Honor: Outsources 40% of its designs to manage costs and speed up production – Oppo Group: Outsources 39%, balancing brand-specific customizations with efficient production