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