Aiming to diversify its supply chain and tap into the booming Indian market, American multinational tech giant Google is reportedly gearing up to manufacture Pixel smartphones in India. And cherry on top, it could happen as early as the next quarter, media outlet Nikkei reported.
The Alphabet-owned company will start setting up the production line for its high-end Google Pixel 8 Pro in the southern part of the country in the coming weeks, and start shipping phones in the April-June quarter. This will reportedly be followed by the introduction of the Pixel 8 in the northern part of the country later this year. Initially, the production of Google Pixel smartphones will commence in modest volume.
The decision to diversify its manufacturing base is driven by multiple factors; prominent among them are the ongoing trade tensions between the US and China coupled with Google’s desire to capitalize on the rapidly growing Indian smartphone market. In addition, India’s smartphone market, despite facing a slight decline in 2023, remains significantly larger than the global average, offering immense potential for growth. Furthermore, New Delhi’s initiatives to attract tech manufacturers through incentives and relaxed import restrictions further incentivize Google’s decision.
With this decision, Sundar Pichai-led Google now faces direct competition from key players like Apple and Samsung, both of which have a strong presence in the Indian market. This competitive environment is further enhanced by the large market shares held by Chinese brands such as Vivo and Xiaomi.
In the meanwhile, the action reportedly aligns with the company’s objective of shipping more than 10 million Pixel phones by 2024, after having achieved a similar milestone in 2023 in spite of the global economic recession. It remains to be seen whether the “Made in India” Pixel phones will be primarily targeted for domestic sales or cater to the global market as well.
