Smartphone design is not always made by the brands you see on the box. A new report from Counterpoint Research sheds light on the extent of outsourcing in the industry and reveals which manufacturers rely on outside design firms the most.

Motorola is leading the way in outsourcing: a whopping 90% of its smartphones in the first half of 2024 will be developed by third-party developers. It is followed by Xiaomi, which outsources 78% of its development. Vivo falls somewhere in the middle at 52%.

This trend is expected to continue, with Counterpoint predicting 6% growth in the smartphone design outsourcing market in the first half of 2024. What was the driving force behind this growth? The growing popularity of budget and mid-range phones from Chinese brands.

Looking at other major players, Huawei outsources around 44% of development, while Honor and Oppo Group account for 40% and 39% respectively. Interestingly, the report reveals a clear approach between Apple and Samsung.

Apple adheres strictly to in-house design, controlling the entire process of all its iPhones. Samsung, on the other hand, outsources a smaller portion of 22% in the first half of 2024. However, it is stated that this number is gradually decreasing.

Counterpoint explains this change in two basic factors. First, Samsung faced a decline in market share in the lower and middle segments where outsourcing is more common. Secondly, the South Korean giant is increasingly relying on its own factories in India to produce budget-friendly devices.

Looking ahead, Counterpoint predicts 6% growth in the outsourced smartphone development market in the first half of 2024. This growth is said to be due to the rise in popularity of budget and mid-range devices from Chinese brands, which often rely on exterior design. Partners to accelerate product launches and stay competitive on price.