Wingtech Technology is expected to once again become the largest ODM supplier of Samsung mobile phones, with orders exceeding 40 million

According to China Securities Journal, Samsung recently released mobile phone ODM orders for 2024. Wingtech Technology has received more than 40 million mobile phone ODM orders and is expected to become Samsung's largest ODM supplier again.

According to a Canalys report, total global smartphone shipments are expected to decline by 4% to 1.1 billion units by 2023. However, 2024 will usher in an economic recovery in emerging markets and increased consumer spending, with smartphone shipments expected to grow by 4%.

ODM is the abbreviation of Original Design Manufacturer, which refers to the original design manufacturer. The ODM model is a production method in which the purchaser entrusts the manufacturer to provide a package of services from R&D, design to production and post-maintenance. In the ODM model, the manufacturer is responsible for the design and manufacturing of the entire product, while the purchaser is responsible for sales. This model can help purchasers quickly launch the market and reduce R&D and production costs. The ODM model is widely used in the fields of electronic products and software, but has gradually expanded to other industries. By cooperating with ODM, purchasers can focus on marketing and sales, improving product competitiveness

There are currently two production models in the mobile phone market: the self-research model for the high-end market and the outsourcing design model for low-end models . The self-research model is adopted by some well-known brands such as Huawei, Samsung, Xiaomi, OPPO, vivo, etc., which independently develop and manufacture high-end mobile phones. The outsourcing design model is adopted by some brands, which entrust ODM/IDH manufacturers to design and produce low-end mobile phones. Both models have their own characteristics, but both can meet the needs of different consumers.

Wingtech Technology is one of the three giants of global smartphone ODM. Together with Huaqin Technology and Longqi Technology, it accounts for more than 75% of the global market share.

According to public reports, it is reported that Wingtech Technology has successfully obtained Samsung’s ODM order for 40 million mobile phones in 2022, and there are additional orders of more than 10 million units. Regarding orders in 2023, there were previous rumors that Wingtech Technology will receive 45 million ODM orders from Samsung, including 25 million mobile phone orders and 20 million tablet orders. However, Wingtech Technology only responded to this rumor saying that it is just a rumor at present.

Wingtech Technology has not yet announced its 2023 financial report. However, according to its third-quarter report, the company achieved operating income of 44.412 billion yuan in the first three quarters, a year-on-year increase of 5.53%. Net profit attributable to the parent company was 2.100 billion yuan, a year-on-year increase of 8.08%. The following are the company's main operations.

• The semiconductor business achieved revenue of 3.999 billion yuan, the gross profit margin of the business was 37.70%, and the net profit was 683 million yuan;

• Product integration business realization Business income was 10.805 billion yuan, gross profit margin was 9.97%, and net profit was 245 million yuan;

• The optical module business achieved a net profit of 10 million yuan;

• The net cash flow generated from operating activities in the first three quarters was 4.483 billion yuan, a year-on-year increase of 200.81%;

• The R&D investment in the first three quarters reached 2.34 billion yuan, which was 2.34 billion yuan in the same period last year. 2.447 billion yuan.

Related reading:

"Wingtech Technology's net profit in the third quarter was 848 million yuan, a year-on-year increase of 8.08%, and the semiconductor business was 683 million yuan"

"Wingtech Technology wins Samsung's 2023 ODM order for mobile phone and tablet products"

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