Launching a hardware product is never easy, but your choice of development path can make all the difference. It affects time-to-market, budget, control over intellectual property, and long-term flexibility. Here are the four core approaches used by startups and global brands alike, with clear guidance on when and why to choose each one.
With this approach, you take an existing product from a manufacturer, rebrand it with your logo and packaging, and sell it as your own.
Pros: Minimal investment, no need for engineering expertise, and production can start in just 1–3 months.
Cons: No control over functionality or design. Want to upgrade firmware or change materials? You can’t – the manufacturer decides everything.
Best for: Testing a market quickly, launching a budget-friendly product, or when funds are extremely limited.
Example: Many smart scales, Bluetooth earbuds, or power banks sold online are white-labeled – identical inside, different branding outside.
2. ODM – Customized Development with Speed
ODM (Original Design Manufacturer) means partnering with a factory that already builds similar products. Together, you co-develop a new, deeply customized device, with unique appearance, mechanics, electronics, and software.
Pros: Significant customization while maintaining fast development – 8–10 months for complex devices, faster for simpler ones.
Cons: You pay a one-time NRE (Non-Recurring Engineering) fee. Even if you fully fund the design, switching manufacturers later is extremely difficult – part of the IP remains with the ODM. In practice, you’re locked in for the product’s lifetime.
Best for: When speed to market is critical, and you want a distinctive product without building everything from scratch.
Pro tip: Choose an ODM with strong engineering support and experience in certifications (FCC, CE, RoHS) – they’ll streamline your path to production.
3. In-House Development + Contract Manufacturing: Full Control, High Cost
You hire internal engineers or work with a product development firm (like AJProTech) to design the product from the ground up. Once the design is complete, you partner with a contract manufacturer (CM) to produce it.
Pros: You own 100% of the IP and can switch manufacturers at any time. Design choices can align with strategic goals, such as manufacturing outside China.
Cons: Longest timeline – 12–24 months – and highest cost. Requires deep technical oversight and project management.
Best for: Truly innovative or complex products where differentiation, scalability, and IP protection are top priorities.
Example: Companies like Tesla or Dyson use this model to maintain tight control over both hardware and user experience.
4. JDM — Joint Development: The Best of Both Worlds
JDM (Joint Development Model) splits the work: your team (or a third-party developer) handles core innovation — industrial design, user interface, key algorithms, while the factory focuses on manufacturability, tooling, and production readiness.
Pros: Balanced cost, faster than full in-house development (10–15 months), and you retain control over critical IP. Leverages the factory’s manufacturing expertise without sacrificing uniqueness.
Cons: Requires strong collaboration and clear division of responsibilities. Misalignment can lead to delays or quality issues.
Best for: When you want a differentiated product, faster time-to-market, and a smarter use of resources.
Think of it as a strategic partnership: you bring the vision, the factory brings the scale.
There’s no single “best” way to build hardware — only the right path for your goals. Start with white label to validate demand. Use ODM to scale a proven concept. Go in-house when you’re ready to own the future. Or choose JDM to strike the perfect balance.
