Currently, Pixel smartphones are manufactured in Vietnam and China.
In a major push towards manufacturing in India, Google has started assembling Pixel 8 phones through Wowtek Technology India Pvt Ltd, a subsidiary of Bharat FIH, part of the Foxconn group, with a factory in Tamil Nadu.
According to senior Meity officials, the global giant has given a three-year timeline within which it hopes to shift most of the assembly of its new range of mobile devices to India.
Currently, Pixel smartphones are manufactured in Vietnam and China. The American tech giant began manufacturing Pixel devices in China in 2016 and moved some assembly to Vietnam in 2019 due to rising tensions between the US and China. Google announced yesterday the global launch of its latest Pixel 9 smartphone.
Commenting on the development, a senior Meity official said, “In the initial stages, they will manufacture a limited number of phones. But once production stabilises, as per the plan discussed with us, in three years they will assemble most of their new smartphones in India for the domestic market and exports. In many ways, it is the same strategy as Apple, which has shifted a substantial portion of iPhone assembly to India.” A spokesperson for Bharat FIH and Google did not respond to queries.
Challenges of PLI scheme for Bharat FIH
Bharat FIH is already eligible for the Production Linked Incentive (PLI) scheme for mobile manufacturing. However, it has not been able to claim the 4-6 per cent incentive as it has not been able to meet the production value and investment target required for eligibility. In fact, one of the largest OEMs, Xiaomi, has significantly reduced its dependence on Bharat FIH and has turned to other players including Dixon Technologies.
Foxconn to double capacity in India
In a related development, Foxconn has also decided to double its capacity in India to meet the country’s nearly doubled need for assembling iPhones and the benefits offered by its contract with Google. In its talks with the government, it has also pledged to create 100,000 direct jobs of its own (up from 50,000 currently).
The Meity official said, “Foxconn has big plans and has decided to double its capacity in the country. It will also generate a total of Rs 100,000 crore worth of jobs in the country.”
In October 2023, Google announced that it would assemble Pixel phones in India and was looking for suppliers. While it identified Bharat FIH, which makes non-Apple mobile devices, it also closed a deal with Dixon Technologies (also eligible for PLI) to assemble the phones.
Google’s growing market share
However, Google is a minor player in the global mobile market. In the first quarter of 2024, its global share was negligible (0.25%), compared to Apple, which had 17%, according to Counterpoint Research. It is also a very small player in India. In 2023, its share in the country was just 0.25%, double that of the previous year.
Counterpoint projected that the latest development would help Google pick up the pace and grow 39 percent by 2024. They estimate that it will be able to sell 600,000 to 700,000 phones in India in a year once it starts assembling in India.
First published: August 14, 2024 | 15:22 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.