Dixon Technologies, a domestic manufacturer, has secured a deal to produce Alphabet Inc’s Google Pixel 8 smartphones in India. The first batch of Indian-manufactured devices is expected to hit the market in September, with production currently in the trial phase. This move comes after Alphabet’s announcement last year to manufacture Google Pixel smartphones in India, making it the only major global brand to join the Indian smartphone manufacturing initiative.
Dixon’s production capacity for the Pixel will be 100,000 units per month, with a percentage to be exported. The Pixel 8 model is popular in India, accounting for nearly 80% of all Pixel sales in the country. Currently, Pixel devices are manufactured in Asian countries such as China and Vietnam. Padget Electronics, a subsidiary of Dixon Technologies, has partnered with Compal Electronics from Taiwan to manufacture phones for their customers. Compal is a global manufacturing partner for Google products and industry insiders suggest that Padget will manufacture Pixel devices under the government’s PLI scheme, offering competitive production prices to Google.
Dixon Technologies CEO Atul Lall hinted at the expansion of smartphone manufacturing for a global brand through Compal during the company’s earnings call in May. Plans to expand production in India for upcoming Pixel models as well as older devices are in the works, similar to Apple’s production strategy. There are talks of Google potentially partnering with Foxconn to manufacture Pixel smartphones in India as well.
Google’s decision to manufacture Pixel smartphones in India is seen as a strategic move to gain market share in the Indian smartphone market. Despite previous attempts, Google has struggled to compete with Apple and Samsung in the Rs 50,000+ price range, where consumers prefer iPhones or Galaxy devices. Import duties on foreign smartphones drive up prices, making locally manufactured devices more appealing to consumers. Counterpoint Research shows that Apple led the Rs 50,000+ smartphone market in 2023, followed by Samsung, while Pixel variants only accounted for a 1% share. However, Google saw a 147% increase in shipments to India in 2023.
In India, locally manufactured iPhone models and Samsung’s premium devices are popular among consumers. Analysts believe that the locally made Pixel smartphones will cater to both local and export markets. With plans to gradually increase production and potentially partner with other manufacturing companies in India, Google aims to strengthen its presence in the country’s smartphone market.
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