SMTA International Conference Proceedings


ODM OR CDM?

Author: Bill Coker
Company: Elcoteq Network Corporation
Date Published: 9/21/2003   Conference: SMTA International


Abstract: While the global market for mobile phones and personal communication devices continues to heat up, cost and shrinking product life cycles have traditional providers of these devices scrambling to maintain margins and grow market share by providing a wider variety of new product offerings.

Today’s leading mobile phone manufacturers have three options, first: add more engineering capability and generate more products faster, second: buy an already developed and tested product from a third party design specialist called an ODM (original design manufacturer) or third: customize a pre-developed platform design from a CDM (contract design manufacturer). Many of today’s leading companies are supplementing their product lines with third party ODM / CDM solutions. The total available market for ODM phones is expected to grow 7-8% in 2003 to 40% in 2005 and beyond. The acceptance of this ODM model allows handset manufacturers to react faster to changes in market demand, bridge regional technology (CDMA , GSM, GPRS ) issues, add new features, and support more models.

As a result, they can bring new products to market faster at a fraction of the cost, in many cases as much as 25% of the cost, of internal development.

Key words: ODM, EMS, handsets.



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