Dixon Technologies, a prominent local contract manufacturer, is set to produce Alphabet Inc’s high-end Google Pixel 8 smartphones in India.
According to the Economic Times, the initial batch of India-made Pixel 8 phones will hit the market by September, following the commencement of trial production.
Alphabet’s decision, announced last October, marks its first foray into manufacturing Google Pixel smartphones in India. Dixon Technologies’ production capacity for the Pixel smartphones will reach 100,000 units per month, with approximately 25-30 percent allocated for export. This move is part of Google’s strategy to gain a stronger foothold in the world’s second-largest smartphone market.
The Pixel 8 model accounts for nearly 80 percent of all Pixel sales in India, according to company executives. Currently, these devices are produced in countries like China and Vietnam. Dixon’s subsidiary, Padget Electronics, recently secured an agreement with Taiwan’s Compal Electronics to manufacture phones for Compal’s clients, including Google. Padget, benefiting from the government’s production-linked incentive (PLI) scheme for mobile phones, will manage Pixel device production and offer competitive rates to Google.
Dixon Technologies’ managing director, Atul B Lall, announced during the company’s earnings call on May 15 that smartphone manufacturing for a global brand in collaboration with Compal would commence by September, without specifying further details.
Executives noted that Alphabet, similar to Apple, plans to gradually scale its production operations in India. Dixon might also manufacture future Pixel models and older versions domestically. Additionally, Alphabet is considering engaging a second manufacturing partner in India and has been in discussions with Foxconn regarding Pixel smartphone production.
Analysts suggest Google’s initiative is aimed at capturing a share of the Indian market. In the premium segment, where Pixel smartphones are priced above Rs 50,000, consumers generally prefer Apple’s iPhones or Samsung’s Galaxy devices. Imported smartphones face a 22 percent import duty, contributing to higher prices. Counterpoint Research data indicated that Apple led the Rs 50,000-plus smartphone segment in 2023 with a 68 percent market share, followed by Samsung at 21 percent. All Pixel models combined held a mere 1 percent share, despite a 147 percent increase in Pixel shipments to India that year.
Currently, most iPhone 15 and 15 Plus models, along with previous generations of Apple devices sold in India, are locally manufactured, as are Samsung’s premium models. Shilpi Jain, a senior analyst at Counterpoint, stated that locally produced Pixel devices will cater to both domestic and international markets, highlighting the strategic importance of this initiative for Google.
This development represents a significant step for Google in strengthening its presence in the competitive Indian smartphone market.
