Many consumers across the globe love electronic devices -the latest by the way- those gadgets which are both very technologically advanced and also take many hours of work before they can be up for sales.
Considering that in the consumer electronics segment, the number of users is expected to amount to 2,562.5m by 2023, companies whose business revolves around selling consumer electronic devices are faced with the titanic task of producing millions of electronic units every year, which is not easy.
Source: www.statista.com
Many of these companies simply lack the resources, expertise, and logistics to be able to manufacture their own product, that’s why many decide to go for outsourcing electronics in China and other nations in Asia, Europe, and Latin America.
Looking for a place other than China to outsource electronics manufacturing? Check the post below
Electronics Not Made in China: Top 5 Alternatives
Companies that outsource have proven that manufacturing in China or in other nations, is the right move for many companies in the consumer electronics segment, some of them being able to make billions in revenue every year.
Here’s a quick video summary
Outsourcing also allows companies to focus on what they know how to do best, in many cases that is marketing, branding, and customer service, something that for any company dealing directly with the end consumers is vital for surviving.
Do you know how many cellphones were made in China from May 2018 to May 2019? Take a guess!!
If you said over one billion then you’re right.
Source: Statista.com
A lot of that cellphone production took place in manufacturing companies in China. Now I’ll show you a list of 10 companies that outsource electronics manufacturing so they can focus on their end consumer.
Table of Contents
10-FUJITSU
Although it’s not well known by many people, it’s one of the leading outsourcing manufacturing companies in electronics and technology globally.
The company has over 150,000 employees across the globe and has spread its wings in more than 100 countries worldwide.
The company came into existence on 20th June 1935 with its headquarters in Tokyo, Japan, and owned by Furukawa Group.
It’s involved in producing mobiles, PCs, laptops, and electronic components among others. Its annual sales revenue in 2018 was $36.1 billion.
Even though Fujitsu products are assembled in Japan, many of their electronic components such as motherboards, RAM chipsets, and HDD, among others, are made in countries like Vietnam, Korea, Malaysia, and China.
Also Read: 9 Things You Need to Know to Manufacture in China
9-TOSHIBA
This company came into place when Shibaura Engineering Works and Tokyo Electric merged in 1939.
Shibaura was known as one of the very first ODM of telegraph equipment and electrical machinery which made it a leader in industrial power globally.
Tokyo Electric was majorly focused on electric lamps.
Toshiba later acquired OCZ Technology, which gave it a boost in its expansion, its innovation and development have made it improve continually. It had an annual sales revenue of $44.28 billion in 2018.
Many of Toshiba products, such as flash drives, T.Vs, keyboards, and surveillance cameras are made by Chinese manufacturers.
8-LG
This company is outsourcing manufacturing as part of their business model. It’s located in South Korea and now has a presence in over 80 countries.
It was made out of the merger of Lak-Hui, which was involved in plastics, and Goldstar which was making electronics.
The two merged to form LG, which at the moment was known for producing soaps.
It later dissolved and started dealing with electronics. It has over 120 operations globally with over 75,000 employees. It had an annual sales in 2020 of $57 billion.
LG products range from smartphones to washing machines and fridges, these products are made in Vietnam, China, and India.
7-HP
The company was established by William Bill and David Packard. From 2007 to 2014 it was the leading manufacturer in PC, however, it was overtaken by Lenovo.
The company focuses on printers, computing devices, software services, among others.
Most of HP’s laptop components are manufactured within the China manufacturing ecosystem, other components are made in Thailand, Malaysia, and the Philippines.
The assembly process might either take place in the USA or China, depending on which market the final product will be sold. Its annual sales in 2020 was $56 billion.
6-PANASONIC
Another of the companies that outsource electronics manufacturing.
Before the company was re-branded, it was known as Matsushita Electric Industrial Co. Ltd.
The company was established in 1918 in Japan and has been involved in various lines of products and services like making bulb attachments, projectors, batteries, cameras, air conditioners, and other electronic items and fittings.
It got involved in the TV sets business, where it got a relatively large market. Later, it had a partnership with Tesla motors and acquired ITC Global which played a great role in making it have a great market share across the globe.
Its annual sales in 2020 was $68 billion.
Panasonic’s product portfolio is big, it includes products like Cameras, Bluetooth Wireless earphones, batteries, projectors, scanners, blood pressure monitors, and more.
Out of 318 products made by Panasonic, 71 are made in China, 46 in Malaysia, 13 in Thailand, 10 in Taiwan, 3 in Mexico, 3 in the USA, 2 in the Czech Republic, 2 in Poland, 1 in the Philippines, 1 in Germany, 1 in Slovakia and 165 in Japan.
5-SONY
This happens to be one of the “companies that outsource” that has a very strong global presence.
This company has subsidiaries like Sony Storage Media and Devices Corporation, Sony Global Manufacturing and Operations Corporation, and Sony Corporation, among others.
It has been doing business in multiple and diverse areas like photography, computing, videography, television, smart devices, home cinema, cables, accessories, smart devices, and audio.
A move they made to become profitable was to outsource product design and manufacturing. Its annual sales in 2020 was $75 billion.
Many of Sony’s cameras are made in Thailand and China. It was in 2017 when the new Sony a7rIII was noted to have been made by Chinese manufacturers, before that, all mirrorless system cameras were outside the Chinese manufacturing ecosystem, they were all being made in Thailand.
Also Read: How to Ensure Quality in Electronics Manufacturing?
4-DELL
This computer company has its headquarters in Texas. This company has focused on the line of “Build-To-Order” models.
This has helped Dell to focus its design, maintenance, and development around its consumer needs.
After Dell acquired Perot system, it changed from being a hardware manufacturing company only and added some IT services.
The company has been advancing in its inventory network administration and other electronic trade.
In managing their inventory, they apply the Just-In-Time approach to ensure that they maintain a constant flow of products. Its annual sales in 2020 was $92 billion.
Assembly of desktop computers for the North American market used to take place at Dell plants in Austin Texas and Lebanon, Tennessee, such plants were close in 2008 and early 2009, respectively.
Most of the work that used to take place in Dell’s U.S. plants was transferred to contract manufacturers in Asia and Mexico or some of Dell’s own factories overseas.
3-MICROSOFT
Perhaps this is one of the oldest companies in the electronic field, dating back to April 4, 1975, when it was founded by Bill Gates and his colleague Paul Allen.
It was considered as the world’s largest maker of various software.
From the way how it has been doing timely updates on its software over the years, you can tell that the company is built on constant research and development.
It started with Microsoft Windows and later MS office, which proved to be very useful to consumers, making it have the greatest market share among the electronics companies.
Its annual sales revenue in 2018 was $110.36 billion. Manufacturing in China keeps on being the go-to place for new electronic products, the Surface laptops are made in China.
2-SAMSUNG
Samsung was founded in 1938 in South Korea and has turned out to be one of the leading companies in selling phones and smartphones.
In terms of the phone segment, its market is generally good. Since it acquired Hanguk Jeonja Tongsana telecommunications, there was a boost in its growth.
It has also turned out to be a major microchip producer and ceased from outsourcing from other companies. Later, it released the first Liquid Crystal Display screen which changed the television world.
It continued releasing even sleeker televisions which became the best of many. Its annual sales in 2020 was $212 billion.
50% of Samsung mobile phones are made in Vietnam.
At present, Samsung has six mobile phone manufacturing facilities in six countries, Vietnam, China, India, Brazil, Indonesia, and Korea. The two plants in Vietnam have a combined annual production capacity of 270 million units.
The manufacturing companies in China have a maximum capacity of 150 million phones. However, Samsung is looking to cut its production by 40 million because of high labor costs in China.
1-APPLE
Ranked as one of the most valuable companies in the world, Apple has been known to deliver quality electronics to its consumers.
It has taken the market with products like the iPhone, iPad, and Mac. As compared to most premium brands in smartphones, it has some of the most innovative features.
It was formed in 1976 on April 1 by the now-famous Steve Jobs, Ronald Wayne, and Steve Wozniak. Their first product was from Wozniak, which designed Apple 1 which was sold for $2,867.
Its annual sales in 2020 was $273 Billion.
The majority of Apple’s iPhones are assembled in manufacturing companies in China, Shenzhen, China to be more exact; assembled from different parts that are made in China and another handful of countries.
WHY ARE MOST ELECTRONIC PRODUCTS DESIGNED AND MANUFACTURED IN CHINA, AND CAN THAT CHANGE?
CONCLUSION. COMPANIES OUTSOURCING MANUFACTURING
All the companies that outsource in this list are part of a very competitive market, the consumer electronics market, a segment with already strongly established brands, and new ones popping up every year in hopes of getting some of the market shares.
Overall all companies in the consumer electronics segment are fighting to stay relevant, which is why they resort to manufacturing in China and other Asian nations, and some European nations in some instances.
By doing so, these companies can focus on doing the so needed research and development activities to come up with new and innovative designs and software ideas that will keep them relevant and asking people for more.
As you were able to see after reading this post, manufacturing in China still remains as one of the main destinations for companies that outsource, and this is no longer just because of the low cost of labor, but because China has managed to build one of the best manufacturing and logistic ecosystems for electronic manufacturing.
Did you know?
In 2017 China exported 40% of the world’s computers, and as of data from 2017, China makes 80% of the world’s air conditioners
Electronics manufacturing is a service offered by companies that specialize in designing and manufacturing of electronic devices. Some of these companies also offer repair services for electronic components.
The concept of electronics manufacturing is also referred to as Electronics Contract Manufacturing.
The business model of companies that focus on electronics manufacturing services is to specialize in large economies of scale that allows them to run their own factories, keep high inventory of electronic components and other raw materials, as well as being able to afford industrial design and manufacturing experts in their payroll.
Hiwin- For Industrial Robots
Thunder Tiger- For Electric Toys
TITOMA- For Unique Embedded Systems
Goertek Electronics- For VR
MTE, TW- For Self-service Kiosks
Heisei- For POS devices
iBase- For Industrial Panel Pc’s
Arms Group- For Wireless Chargers
Omate- For Smart Watches
Amobile solutions- For Rugged Tablets
The answer to which is the best company for manufacturing electronics will depend on which type of electronic you want to manufacture.
These are examples of manufacturing companies.
Foxconn- Manufactures the iPhone
Samsung Electronics- Manufactures Samsung phones and other Samsung electronics
Pacific Cycles- Manufactures Bicycles
Titoma- Manufactures embedded system and IoT devices
Grandsun- Manufactures smart headphones and speakers
Apple is not a manufacturing company. Apple is a company that focuses on research and development as well as design, while both activities are part of the manufacturing process, Apple does not own any manufacturing plant nor equipment for it. The components for their products are sourced mainly from Asia and final assembly takes part mostly in China.
Here’s the breakdown.
3 Taiwanese companies – Foxconn, Pegatron, and Wistron- assemble iPhones and iPads in factories that are located in China.
One out of the three companies above also makes MacBooks
Quanta Computers – also a Taiwanese company- makes the Apple watch in a plant in Chongqing, China.
The high-end MacBook pro is manufactured by Flextronics -Flextronics is a Singaporean company- in a plant in Austin, Texas.
Foxconn also has a plant in Brazil where they manufacture iPhones.
These are the biggest electronics companies in the computer category
Lenovo
HP
DELL
Asus
Acer
Apple
These are the biggest electronics companies in the tablets category
Apple
Samsung
Asus
Lenovo
Amazon
These are the biggest electronics companies in the Tv category
Samsung
LG
Sony
Sharp
Panasonic
These are the biggest electronics companies in the printers category
HP
Canon
Epson
Brother
Samsung
These are the biggest electronics companies in the Cell Phone category
Samsung
Apple
Huawei
Xiaomi
Sony
Many of these companies outsource their manufacturing process to ODMs and OEMs in China.
Most of the world’s electronics are manufactured in China, specifically in Shenzhen. Inc.com reports that 90% of the world’s electronics are made in Shenzhen, this includes toys, televisions, air conditioning units, smartphones and drones.
China makes the best electronics, this is due to the unparalleled manufacturing ecosystem they’ve built over the past 30 years. Electronic giants such as Apple, Microsoft and Samsung manufacture their products in China.
Apple’s phones are manufactured by the following 3 companies
Foxconn
Pegatron
Wistron
The manufacturing plants are located in China.
These are the reasons why Apple manufactures in China
China has the manpower to manufacture all Apple’s products.
China-over the past 30 years- has built an unparalleled manufacturing ecosystem that allows Apple’s products to be manufactured in a timely manner.
Many of the electronic components for Apple’s products are manufactured in China, hence, it makes sense to also assemble the final product in China.
Exporting electronic components out of China for assembly in other country is time consuming and raises costs.
China has a highly skilled electronics manufacturing workforce.
The reason why companies manufacture in China is because by doing so they can lower their costs and stay competitive in their local markets. Also, China has a manufacturing ecosystem that allows it to manufacture products in a timely manner, especially when it comes to electronic devices.
These are the benefits of outsourcing manufacturing to China.
Lower manufacturing costs
Cheaper labor
Higher manufacturing capacity
Access to a plethora of product portfolio expansion possibilities thanks to the many factories in China that manufacture all sorts of products.
You reduce lead times as many components for final products are also made in China.
Increased production efficiency as Chinese workers are highly skilled in manufacturing.
These are the disadvantages of outsourcing
Possible quality issues
IP theft
Possible hidden costs
To avoid all of the above, is important to make sure you find a reliable factory to work with, is best to consult with people that already have experience in the manufacturing field to guide you through the process of finding the right manufacturing partner with whom you’ll outsource your manufacturing.
HAVE QUESTIONS ABOUT THE DESIGN AND MANUFACTURE OF ELECTRONICS IN TAIWAN OR CHINA? TALK WITH US!
Titoma provides B2B companies with the complete design and manufacturing of embedded electronic products, both in China and Taiwan.
Unlike most ODM manufacturers we offer our clients complete ownership of the IP, so nobody is locked in.
We engineer our products in Taiwan and are very well tapped into the China/Taiwan Component Eco-system, so key to remain competitive. We involve a few trusted factories, right from the start of the design. This way we make sure everybody is aligned, and by avoiding surprises we avoid delays, assuring the fastest possible Time To Market (hence our name Titoma).
Talk with one of our design experts by hitting the button below, and learn how we can enable your business with a custom device, without the worries.
