- Google is planning to commence Pixel smartphone production in India from the second quarter, aiming to tap into one of the world’s largest smartphone markets.
- This strategic move involves setting up production lines for Pixel 8 Pro in southern Indian factories initially, followed by Pixel 8 assembly in northern factories later in the second quarter of this year.
- By manufacturing Pixels in India, Google aims to reduce transportation costs, cater better to local market demands, and offer competitive pricing, with the goal of shipping 10 million smartphones by 2024, amidst a growing demand for smartphones in the country.
Google, under Alphabet, has notified its suppliers of plans to commence Pixel smartphone production in India as early as the second quarter, aiming to expand its presence in the Indian market.
India is one of the world’s largest smartphone markets, and Google intends to first set up Pixel 8 Pro production lines in its southern factories in the coming weeks, followed by assembly of Pixel 8 models in northern factories later in the second quarter of this year.
In recent years, companies like Apple, Xiaomi, and Samsung have brought several assembly and component suppliers to India, making it an emerging hub for smartphone manufacturing.
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This is a significant shift in Google’s supply chain strategy
This move also signifies a significant shift in Google’s supply chain strategy, aiming to lower transportation and tariff costs, better cater to local market demands, and offer more competitive pricing and superior services by producing Pixels in India.
Google announced last year that its first India-made Pixel series smartphone would launch in 2024, aiming to tap into the Indian smartphone market alongside Apple and Samsung amid the overall slowdown in the industry.
Data from research firm IDC shows that the Indian smartphone market grew by 1% year-on-year in 2023, reaching 146 million units, with the growth rate in the second half of the year increasing by 11% compared to the previous year.
In contrast, the global smartphone market declined by 4.7% in 2023.
The demand for smartphones in India is strong
Market research firm TechInsights released a report stating that the demand for smartphones in India is strong and continues to grow, further fuelled by the widespread adoption of 5G networks and the introduction of 5G smartphones, driving the development of the smartphone market.
In terms of market share, Xiaomi, Vivo, and Samsung respectively held the top three positions in the Indian smartphone market in the fourth quarter of last year, with market shares of 18.8%, 17.8%, and 16.2%.
An insider stated that Google has set an ambitious goal of shipping 10 million smartphones in 2024.
Analysts suggest that amidst the strong return of Huawei smartphones and Samsung’s attempt to switch its default search engine from Google to Bing, the Pixel smartphone business is crucial for the sustainability of Google’s search engine and mobile operating system.
