According to sources cited by the media, Alphabet's Google has informed its suppliers that it plans to produce Pixel smartphones in India as early as the second quarter, and the company is increasing its efforts to expand into the Indian market.
India is one of the largest smartphone markets in the world. According to insiders, in the coming weeks, Google will first prepare a production line for the Pixel 8 Pro at its factory in southern India, and plans to start producing this high-end phone in the second quarter of this year. Subsequently, the Pixel 8 model will be assembled at its factory in northern India this year.
In recent years, companies such as Apple, Xiaomi, and Samsung have introduced multiple assembly and component suppliers to India, which has also become an emerging center for smartphone manufacturing.
This move also marks an important shift in Google's supply chain strategy. By producing Pixels in India, Google can not only reduce transportation and tariff costs, but also better adapt to local market demand, provide more competitive prices and higher quality services.
Google announced last year that its first Pixel series of phones made in India will be launched in 2024. As the development of the entire smartphone industry slows down, Google will join Apple and Samsung to explore the Indian smartphone market.
According to research firm IDC, the Indian smartphone market grew by 1% year-on-year in 2023, reaching 146 million units. The growth rate in the second half of the year increased by 11% compared to the previous year. In contrast, the global smartphone market as a whole declined by 4.7% in 2023.
According to a report released by market research company TechInsights, the demand for smartphones in the Indian market is strong and continues to grow. With the popularization of 5G networks and the launch of 5G phones, consumers' demand for high-speed and low latency network experiences continues to increase, further driving the development of the smartphone market.
In terms of market share, in the fourth quarter of last year, Xiaomi, vivo, and Samsung respectively occupied the top three positions in the Indian smartphone market, with market shares of 18.8%, 17.8%, and 16.2%, respectively.
A person familiar with the matter said that Google has set an ambitious goal of shipping 10 million phones by 2024.
Analysis shows that in the context of Huawei's strong return to smartphones and Samsung's attempt to replace the default search engine on its phones from Google to Bing, Pixel's mobile business is crucial for the sustainability of Google's search engine and mobile operating system.
"Made in India"
As Google plans to expand its mobile phone production capacity, the Indian government is also actively promoting the country to become a manufacturing powerhouse and providing various incentives to attract companies to establish mobile device and personal computer supply chains locally.
At the end of last month, the Indian government announced a reduction in tariffs on plastic and metal mechanical parts, SIM card slots, and screws from 15% to 10%. This is a reform measure taken by the Indian government to enhance the competitiveness of India's mobile phone manufacturing industry.
At the same time, Apple has requested suppliers to accelerate investment in India and quickly establish an iPhone supply chain ecosystem. It is reported that Apple and its suppliers in India have set a new goal: to produce over 50 million iPhones annually in India within the next 2-3 years.
This year, the world's two largest personal computer manufacturers, Acer and Asus, also plan to strengthen their production in India.