Dixon Technologies set to manufacture Google Pixel 8 smartphones in India

Local contract manufacturer Dixon Technologies said the initial batch of Indian-made devices will be available in the market by September, as trial production has recently started

Dixon Technologies, a local contract manufacturer, will produce Alphabet Inc's high-end Google Pixel 8 smartphones in the country.

The company said the initial batch of India-made phones will be available in the market by September, as trial production has recently started, according to a report in the Economic Times (ET).

In October last year, Alphabet announced its decision to manufacture Google Pixel smartphones in India, marking the inclusion of the only major global smartphone brand that had not yet participated in the country’s smartphone manufacturing drive.

Dixon’s production capacity for Pixel smartphones will reach 100,000 units monthly, with an estimated 25-30 per cent designated for export, as the company embarks on a renewed effort to capture market share in India, the world’s second-largest smartphone market.

 

Pixel 8 comprises 80% of Pixel sales in India  

The report quoted executives as saying that the Pixel 8 model comprises nearly 80 per cent of all Pixel sales in India. Currently, these devices are manufactured in Asian countries such as China and Vietnam. This move comes on the heels of Dixon's subsidiary, Padget Electronics, securing an agreement with Taiwan’s Compal Electronics to manufacture phones for Compal’s clientele.

Compal is a global manufacturing partner for Google products.

Padget, a beneficiary of the government's production-linked incentive (PLI) scheme for mobile phones, will handle the production of Pixel devices and has offered competitive production rates to Google.

During the company’s earnings call on May 15, Dixon Technologies’ managing director Atul B Lall said the company would start smartphone manufacturing for a global brand in collaboration with Compal by September.

However, no specific details were provided at that time, the report stated.

According to the executives, Alphabet, like Apple, intends to gradually expand its production operations in India. Dixon might also manufacture upcoming Pixel models along with older versions within the country. Additionally, Alphabet is contemplating engaging a second manufacturing partner in India.

Reports suggest that Google has been in discussions with Foxconn regarding the production of Pixel smartphones in India.

Consumers favour Apple, Samsung smartphones

Analysts indicate that Google’s initiative is partly driven by the desire to capture a portion of the Indian market. In the price segment exceeding Rs 50,000 for Pixel smartphones, consumers tend to favour Apple's iPhones or Samsung's Galaxy devices.

Furthermore, imported smartphones incur a 22 per cent import duty, which contributes to higher price tags.

According to the data from Counterpoint Research, Apple dominated the Rs 50,000-plus smartphone segment in 2023 with a market share of 68 per cent, followed by Samsung with 21 per cent. Combined, all Pixel models accounted for a mere 1 per cent share. The research firm noted an increase of 147 per cent in Pixel shipments to India during the same year, the report said.

Presently, the majority of iPhone 15 and 15 Plus models, along with previous generations of Apple devices sold in India, are manufactured locally, as are Samsung's premium models.

The report cited Shilpi Jain, a senior analyst at Counterpoint, as saying that locally produced Pixel devices will cater to both domestic and international markets.