Google, the tech giant owned by Alphabet, has decided to begin the production of its Pixel smartphones in India from the second quarter of 2024, according to a report by Nikkei Asia. The move is part of Google’s plan to ship more than 10 million Pixel phones this year, and to expand its presence and market share in the world’s second-largest smartphone market. Here are the details of Google’s Pixel phone production plan in India, and its implications for the company and the industry.
Why is Google making Pixel phones in India?
Google has been selling its Pixel phones in India since 2016, but it has been importing them from other countries, mainly China and Vietnam. This has resulted in high costs and low availability of the phones, which have hampered their sales and popularity in India. According to Counterpoint Research, Google had only a 0.3% market share in India in 2023, compared to 21% for Xiaomi, 18% for Samsung, and 16% for Vivo.
By making Pixel phones in India, Google aims to reduce its costs and increase its supply, as well as to avoid the import duties and taxes that India imposes on foreign-made phones. Google also hopes to benefit from the government’s production-linked incentive (PLI) scheme, which offers subsidies and incentives to smartphone makers who manufacture their products in India. Google also wants to tap into the growing demand for premium and mid-range smartphones in India, which is expected to reach 200 million units by 2025.
How will Google make Pixel phones in India?
Google has told its suppliers to start making its Pixel phones in India by the next quarter at the earliest, Nikkei Asia reported, citing sources familiar with the matter. Google has partnered with two contract manufacturers, Foxconn and Wistron, to produce its Pixel phones in India. Foxconn will make the Pixel 6 and Pixel 6 Pro, the flagship models that were launched in October 2023, while Wistron will make the Pixel 5a, the budget model that was launched in August 2023.
Google plans to make about 7 million Pixel phones in India in 2024, which will account for about 70% of its global shipments, the report said. Google also plans to launch a new Pixel model, the Pixel 6a, in India in the second half of 2024, which will be exclusively made in India. Google will also export some of its Pixel phones made in India to other markets, such as Europe and Southeast Asia.
What are the challenges and opportunities for Google in India?
Google’s Pixel phone production plan in India is a bold and ambitious move, but it also comes with several challenges and opportunities. Some of the key factors that will affect Google’s success in India are:
- Competition: Google will face intense competition from other smartphone makers in India, especially from Chinese brands such as Xiaomi, Vivo, Oppo, and OnePlus, which offer high-quality and affordable phones. Google will also have to compete with Samsung, Apple, and OnePlus, which have a strong presence in the premium segment. Google will have to differentiate its Pixel phones with its unique features, such as its camera, software, and AI capabilities, and also offer competitive prices and attractive offers to attract and retain customers.
- Brand awareness: Google will have to increase its brand awareness and visibility in India, where its Pixel phones are not very well-known or popular. Google will have to invest in marketing and advertising campaigns, as well as in expanding its distribution and service network, to reach out to more potential customers and to build trust and loyalty. Google will also have to leverage its other products and services, such as its search engine, YouTube, Gmail, and Google Pay, to cross-sell and promote its Pixel phones to its existing and new users.
- Innovation: Google will have to keep innovating and improving its Pixel phones, to meet the changing needs and expectations of the Indian customers, who are becoming more tech-savvy and demanding. Google will have to offer new and upgraded features, such as 5G connectivity, foldable screens, and wireless charging, to stay ahead of the curve and to compete with the latest offerings from its rivals. Google will also have to ensure that its Pixel phones are reliable, durable, and secure, and that they receive timely updates and support from the company.
Google’s Pixel phone production plan in India is a strategic and significant step for the company, as it seeks to grow its smartphone business and to strengthen its position in the Indian market. Google’s Pixel phones have the potential to become a game-changer and a disruptor in the Indian smartphone industry, if the company can overcome the challenges and seize the opportunities that lie ahead.
