China-based smartphone vendors have limited the number of new models launched per year to cope with the declining profitability generated by smartphones, a move which has affected the operations of small-scale handset OEMs in China, according to a China-based tech.163.com report.
Lenovo has halved the number of new models launched in 2015 as compared to a year earlier and will limit the new models released per year to 10-12, said the report.
Meanwhile, ZTE has reduced the number of new phones by 50% so far in 2015, and Coolpad has cut the number of entry-level models by 30%.
The streamlining process has also forced handset vendors to cooperate more closely with large-scale ODMs, while reducing their orders to small-scale OEMs, added the report.
The Wingtech Group, currently the largest ODM handset maker in China, has benefited from the emerging trend and has landed more orders from the leading vendors, including Xiaomi Technology and Meizu, said the report. |