Counterpoint: ODM & IDH Smartphone Shipments Down 10% YoY in 2H 2025

Why It Matters

The slump highlights the vulnerability of the low‑end smartphone ecosystem to component cost spikes, forcing ODMs and IDHs to rethink revenue models and threatening margins for OEMs and suppliers alike.

Key Takeaways

• ODM/IDH shipments fell 10% YoY in H2 2025.
• Low‑end phones under $150 dropped 11% YoY.
• Huaqin kept top spot; Longcheer second.
• Tinno grew thanks to Lenovo orders.
• ODMs pivot to AI servers and robotics for new revenue.

Pulse Analysis

Memory price inflation in the latter half of 2025 has rippled through the entire smartphone value chain, hitting the most price‑sensitive segment the hardest. Devices priced below $150, which account for a sizable share of emerging‑market sales, saw an 11% year‑on‑year decline as manufacturers grappled with higher DRAM and NAND costs. The squeeze forced OEMs to either absorb the expense, eroding already thin margins, or shift the burden onto consumers, further dampening demand. This environment set the stage for a broader contraction in ODM and IDH shipments, which fell 10% YoY, snapping a two‑year growth streak.

For ODMs and IDHs, the downturn translates into tighter order books and a strategic crossroads. Market leaders like Huaqin and Longcheer leveraged scale and diversified product mixes to maintain volume, while Tinno capitalized on a surge in Lenovo orders to post modest growth. Many firms responded by pruning low‑margin SKUs and raising retail prices where possible, a move that risks alienating cost‑conscious buyers. Simultaneously, the sector is accelerating diversification into adjacent high‑growth areas such as AI‑optimized servers and industrial robotics, seeking to offset the volatility of the consumer handset market.

Looking ahead to 2026, the outlook remains cautious. Smaller ODMs lacking deep cash reserves or flexible manufacturing lines may see shipment declines outpacing the overall smartphone market, potentially accelerating consolidation. OEMs will need to balance cost‑pass‑through with competitive pricing to retain market share, while suppliers must manage inventory more dynamically. The next two years will test the resilience of the ODM/IDH ecosystem, with successful players likely those that can blend traditional handset expertise with emerging technology revenue streams.