The global production volume of notebook PCs by the ODM/EMS industry increased 11.4% year over year to 39.7 million units in the second quarter of 2019 (2Q19), according to the latest results from the International Data Corporation (IDC) Worldwide Notebook ODM QView. The growth in ODM shipment volume was driven by the increased availability of Intel CPU supply and growing OEM orders.
“The ODMs’ new production facilities weren’t yet ready to mass produce in the second quarter of 2019; therefore, preparing additional inventory to avoid the impact of the USA tariffs is the main reason for the increase in shipments,” said Annabelle Hsu, associate research director for IDC’s Worldwide Hardware Assembly Research. “Notebook PCs sold to the USA market must be produced outside China before the deadline of imposing the tariffs.”
The worldwide production share of the Taiwanese notebook PC ODM/EMS industry reached 82.3% in 2Q19. However, the global manufacturers’ production locations remained concentrated in China. As for the top 5 ODMs, Compal maintained its first place position, while Quanta’s customer base is the most extensive.
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Worldwide Top 5 Notebook PC ODM/EMS Companies, Shipment Share and Rank, 1Q19 – 2Q19 |
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Ranking |
ODM/EMS |
1Q19 Shipment Share (%) |
2Q19 Shipment Share (%) |
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1 |
Compal |
26.0% |
30.5% |
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2 |
Quanta |
20.3% |
21.0% |
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3 |
LCFC |
13.5% |
10.0% |
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4 |
Wistron |
9.7% |
9.4% |
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5 |
Inventec |
10.2% |
9.1% |
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Source: IDC Worldwide ODM & Display Industry Research Group, September 2019 |
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For the worldwide notebook PC ODM industry forecast, the new production facilities outside China will be ready to mass produce soon. As a result, IDC expects the shipments of worldwide notebook PC ODM/EMS will decrease in the fourth quarter of 2019 due to the inventory preparing in earlier this year.
IDC Worldwide ODM & Display Industry Research
The object of IDC’s Worldwide ODM & Display Research is the compilation of manufacturers who provide ODM and EMS services to their clients – branded vendors. The ODM/EMS manufacturers are in the upstream of the industry supply chain, as the red mark in Figure 1. ODM/EMS manufacturers include Foxconn, Huaqin, Compal, Quanta, Compal, Wistron, and others. Their clients are branded or white-box vendors, such as Apple, Amazon, Lenovo, Huawei, Oppo, and others.
