For a pilot of 10–1,000 units, a Shenzhen ODM is cheapest only if a stock design fits and you accept its IP and minimums. A US design firm gives you clear ownership at $100–400 per hour. A US-contracted Shenzhen team sits between them: US contract and file ownership, Shenzhen engineering cost, and small-batch builds.
A first pilot of a connected device is a strange size. A run of 10–1,000 units is too many to hand-build and too few for most factories to care about. Each option for getting it built makes a different trade between cost, ownership, speed and risk. This guide compares the three common routes with publicly posted price anchors, as of October 2026.
What are the three options, exactly?
- Shenzhen ODM, direct. An original design manufacturer that designs and builds. Many start from an existing platform, often called a public-mold or stock design, and change the firmware, enclosure color and logo.
- US design firm. A product development company in North America that designs the device, builds prototypes and hands production to a contract manufacturer, often in Asia.
- US-contracted Shenzhen team. A US company that holds the contract and IP terms, with engineering and production in Shenzhen. This is how Duobay works, so read our part of this comparison with that in mind.
How do the three compare side by side?
| Shenzhen ODM, direct | US design firm | US-contracted Shenzhen team (Duobay) | |
|---|---|---|---|
| Who you contract with | A Chinese company, usually under Chinese law | A US or Canadian company | Aximora Labs Inc., a US company, under US law |
| Typical engineering cost | Low or bundled into unit price for modified stock designs | $100–400 per hour; projects commonly $50k–500k | Fixed price per gate; Gate 0 is a fixed-fee study |
| Minimum order | Often hundreds to thousands of units | None for prototypes; production is handed to a factory | Small batches of 10–1,000 units |
| Who owns the design | Often the ODM, for its base platform | Usually the client, per contract | The client, assigned at each paid gate |
| Source files | Often withheld or partial | Delivered, usually at project end | Delivered at every gate |
| Certification | Varies; often in the ODM’s name or labs in mainland China | Often handed off to a separate lab or the factory | Planned from Gate 0; grants in the client’s name |
| App and cloud | Often the ODM’s own app and device cloud | Varies; often a separate software agency | Device and SDK tested against your backend; optional app and backend built in your cloud account |
| Price basis | FOB or EXW; tariffs are yours | Design fees; manufacturing quoted separately | Landed DDP, tariffs included |
| Time zone and access | China hours; in-person means flying to Shenzhen | Same continent | Bay Area reviews; Shenzhen lab visits during builds |
ODM and design-firm entries describe common patterns. Individual companies differ, and some ODMs assign IP when asked in writing.
What does each option cost for a pilot?
Few firms post prices. Two anchors help with planning:
- US design firms that publish ranges commonly quote $50k–500k per project over 9–12 months. These are vendor statements, not audited figures.
- FCC certification is billed by the test lab and paid by the client in every model. Get a lab quote once the radio design is fixed.
An ODM's engineering fee can look close to zero, because it is recovered in the unit price and the minimum order. For a pilot, compare total cash out the door: engineering, tooling, the minimum order, certification, freight and US duties. A low unit price on 3,000 units you cannot use costs more cash than a higher price on 300.
Tariffs matter here. An ODM quote is usually FOB Shenzhen. US duties on electronics from China range widely by HTS code, and rates have changed several times in 2026. A delivered duty paid (DDP) quote puts that number on the page. See what a DDP landed price includes and try the landed cost and certification estimator.
Who owns the design in each model?
This is the question that most often decides the choice for a software company.
With an ODM built on a stock platform, the ODM usually owns the base design and often the firmware. You own your logo and perhaps your app. If the ODM sells the same platform to a competitor, that is normal business for them. If you want to move production, you may not have the files to do it. Some ODMs will assign custom work in writing, but enforcing a Chinese contract from the US is slow and costly.
A US design firm normally assigns IP to the client under a US contract. The files are usually delivered at project end, so a dispute mid-project can leave you without them.
In our model, ownership is assigned and files are delivered when each gate is paid. If you stop after EVT, you hold every electrical, mechanical and firmware file for that design. See IP ownership and who owns the source files.
Which is fastest to a working pilot?
- Fastest: an ODM modifying a stock design, if the stock design truly fits. Often a few weeks.
- Custom design, Shenzhen-based: engineers sit next to the component market and the board houses. A board respin can arrive in days.
- Custom design, US-based: the design work is close to you, but prototype boards and parts often come from Asia, and the factory hand-off adds a learning curve.
Our gate durations are on How it works. EVT, the first custom PCB, takes 6–10 weeks, and the DVT/PVT small batch takes 8–16 weeks, including certification. The article on EVT, DVT and PVT explains what each build proves.
How does certification differ?
Certification is where pilots stall. Common problems with the ODM route are a grant in the ODM's name and test reports from a lab you cannot easily contact. US design firms often hand certification to a separate lab late in the project.
Two FCC changes make planning more important in 2026. Since December 2025, the FCC does not authorize new devices that contain modules from Covered List entities (FCC 25-71), and since October 13, 2026 that limit extends to certain logic-bearing components. That affects module and chip choices. We run formal certification testing at FCC-recognized labs outside mainland China, such as Taiwan, Hong Kong or the US. That proposal was still pending as of October 2026. We plan the module choice and lab in Gate 0. See FCC certification.
So which fits a 10–1,000 unit pilot?
| If this describes you | Consider |
|---|---|
| A stock device does the job, the vendor's firmware is acceptable, and you can buy the minimum | Shenzhen ODM, direct |
| Industrial design and brand are the main risk, or you need US engineers on site weekly | US design firm |
| Regulated product needing a US-based quality system | US design firm with that experience |
| A custom recording wearable, health wearable, tracker, elder care device or audio product; you must own the files, data must stay in your cloud, and you need 10–1,000 units | US-contracted Shenzhen team |
| Children's product, or government or defense work | Not Duobay. We do not take these projects. |
Our full comparison page covers more cases, including when we are not the right fit.
Questions about choosing a build partner
Why not order a stock device from an ODM and put our logo on it?
If a stock device meets your needs, that is often the fastest and cheapest path. Check who owns the firmware, where the device sends data, and whether you can change the cloud endpoint. Many software companies find they need custom firmware, which brings them back to the IP question.
How do US design firms price a project?
Few post prices. Published ranges from North American design firms commonly run $50k–500k per project over 9–12 months. These are vendor statements, not audited figures.
Does Duobay publish its prices?
No. Each gate gets a fixed quote once we understand the device. Initial calls are free. Gate 0 Feasibility is a paid, fixed-fee study credited against later work if you continue. Engagement terms.
Who pays for FCC certification?
The client pays lab and certification fees in every model. With us, we plan and manage the process and the grant is in your company's name. How we plan certification.
When is a US design firm the better choice?
When you want US engineers on site with your team every week, when industrial design and brand are the main risk, or when your device needs a US-based quality system for a regulated market. Those are good reasons to pay more per hour.
If your pilot is custom hardware in the 10–1,000 units range, tell us what it needs to do. A scoping call is free, and a Duobay engineer replies within 2 business days.
Planning a device like this? Tell us what it needs to do. A Duobay engineer replies within 2 business days. Book a scoping call →