In 2023, Google announced plans to make Pixel smartphones in India this year, and the latest rumor indicates that production lines will be ready in the first quarter, with mass production commencement in the second quarter, echoing similar moves by Apple, Acer, and Asus to move production in India amid global geopolitical tensions.
Nikkei Asia quoted unnamed sources saying that Google instructed its suppliers to commence the production of Pixel smartphones in India by the earliest possible time, aiming for the second quarter.
Google will diversify its smartphone production away from China and seek diversification across India. Sources told the news outlet that Google will first prepare the production line for Pixel 8 PPro in southern India in the coming weeks and begin making phones in the second quarter, adding that Pixel 8 production in northern India will be scheduled in the middle of the year.
Google announced in October 2023 that the company will begin making the Pixel 8 series in India. Pixel smartphones are mostly made in China, with the rest in Vietnam. The contract manufacturers are Foxconn, Compaq, and BYD. Business Standard and the Economic Times quoted sources saying that Google had talked with Bharat FIH, Foxconn's Indian subsidiary, which has manufacturing facilities in southern India. Google also discussed a production partnership with Dixon, which has manufacturing facilities across India. It remains to be seen whether Bharat FIH will make the Pixel 8 churned out in southern India and whether Dixon will be responsible for those made in the northern part of India.
The manufacturing plans will be the first time Google makes smartphones in India, as Apple had urged its suppliers to ramp up iPhone manufacturing in India to reach supply chain resilience. A source told Nikkei Asia that Google is not the only tech company looking for a "China+2" strategy, adding that diversifying away from China into another place is not enough.
A domestic manufacturing strategy for Pixel devices might lead to decreased handset costin India due to the imposition of a 20% import duty. For India, investments from smartphone assemblers and component suppliers could stimulate investments in integrating backward software processes and advancing software development.
The made-in-India Pixel plan comes as shipments of the Pixel series increased amid a declining global smartphone market. IDC data shows that global smartphone shipments fell by 4.7% in 2023 year-on-year, while shipments in India grew by 1% during the same period. Meanwhile, while other smartphone vendors faced challenges, Pixel shipments experienced significant growth globally, rising by 55.44%, reaching 12.27 million units. Pixel shipments grew by 365.09% year-on-year in India in 2023. Still, Google has a meager share of the Indian smartphone market.
This decision follows a comparable initiative by Flex to produce Chromebooks for HP and Google in India in October. Google's intention to manufacture Pixels in India also diversifies production away from Vietnam, which currently serves as the exclusive manufacturing hub for Pixel handsets.
Pixel shipments (million units) | |||
Year | Pixel global shipments | Pixel shipments in India | Pixel market share in India (%) |
2018 | 4.69 | 0.06 | 0.02 |
2019 | 7.15 | 0.07 | 0.02 |
2020 | 3.69 | 0.05 | 0.02 |
2021 | 4.67 | 0.16 | 0.07 |
2022 | 7.89 | 0.14 | 0.07 |
2023 | 12.27 | 0.66 | 0.32 |
Source: IDC, February 2024
