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Google to establish key Pixel manufacturing hub in India; Pixel 8 to be first
Industry News- Aug 14,24
This strategic shift aims to significantly boost the brand’s market presence in India, where it currently holds a modest 0.25% market share, rising to 1% in the premium segment.
Google is set to transform India into a key manufacturing hub for its Pixel smartphones, beginning with the Pixel 8 model. This strategic shift aims to significantly boost the brand’s market presence in India, where it currently holds a modest 0.25% market share, rising to 1% in the premium segment.
The company announced this move on X, expressing appreciation for the support from India’s Minister of Information and Broadcasting, Ashwini Vaishnaw. This development is expected to increase Pixel sales in India by at least threefold, according to industry experts.
The Pixel 8 will be produced by Foxconn and Dixon Technologies, not only for the Indian market but also for export to Europe and potentially the United States. This aligns with the Indian government’s Production Linked Incentive (PLI) scheme, designed to boost local manufacturing and exports.
Google's decision reflects a strategic response to its low market share in India, with expectations of a significant boost in sales following the local manufacturing push. Counterpoint Research notes a slight increase in market share to 0.4% in Q2 2023, with substantial growth anticipated in the latter half of the year.
This move is expected to enhance Google's competitive edge in pricing and expand its market presence through better integration of its generative AI (GenAI) and advanced camera technology. The company is also poised to target the Enterprise segment, potentially increasing its market share further.
With the Pixel 9 series launch imminent, Google’s commitment to local production underscores its dedication to strengthening its position in the Indian market. By establishing a manufacturing base in India, Google aims to cater to local demand and integrate India into its global supply chain for Pixel devices, setting the stage for a major boost in its market dynamics.
(FirstPost)
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