Original design manufacturer
This article relies largely or entirely on a single source. (June 2012) |
An original design manufacturer is a company that designs and manufactures a product that is eventually
Original design manufacturers have grown in size in recent years and, as of 2015[update], many have the scale to handle production in-house for the products that are branded by the buying firm.
This model is especially used in international trade, where a local original design manufacturer is used to produce goods for a foreign company that sees some advantage in the transaction, such as low labor-inputs, transport links or proximity to markets. Innovative and/or patented technologies developed/owned by the original design manufacturer are another cause for this product distribution model. Original design manufacturer models are also used where local ownership-laws possibly prohibit direct ownership of assets by foreigners, allowing a local firm to produce for a brand company - either for the domestic market or for export.
This type of
Post-2016 Nokia phones (HMD) is an example of a firm which relies on original design manufacturers. In late 2019, it switched from relying on only one original design manufacturer to multiple original design manufacturers.[2]
Intellectual property
Original design manufacturers create their own intellectual property and are very proactive in patenting it. Most of their patents are filed in the US, China, and Taiwan.
See also
- White label product
- Product rebranding
- Electronics manufacturing services
- Original equipment manufacturer
- Contract manufacturer
References
- ^ "Global and China Laptop and Tablet PC Industry Report, 2011-2012". Retrieved 2012-09-10.
- ^ "Despite sales decline, Nokia phones business saw its 1st positive earnings (EBIT) in Q4 2019". 31 March 2020.