 "Google Pixel 9 series")
Currently, Pixel smartphones are made 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 in which it expects to shift the bulk of assembly of its new range of mobile devices to India.
Currently, Pixel smartphones are made in Vietnam and China. The US tech giant started making Pixel devices in China in 2016 and shifted part of the assembly to Vietnam in 2019 due to growing US-China tensions. Google announced the global launch of its latest Pixel 9 smartphone yesterday.
PLI scheme challenges for Bharat FIH
Bharat FIH is already eligible for the Production Linked Incentive (PLI) scheme for manufacturing mobile devices. 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 original equipment manufacturers, Xiaomi, has significantly reduced its reliance on Bharat FIH and shifted to other players, including Dixon Technologies.
Foxconn to double India capacity
In a related development, Foxconn has also decided to double its capacity in India to meet the near doubling of the original requirement of assembling iPhones in the country and the upside through its contract now with Google. In its discussions with the government it has also committed to creating 100,000 direct jobs on its own (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 1 lakh jobs in the country.”
In October 2023 Google announced that it would be assembling the Pixel phones in India and was scouting around for vendors. While it identified Bharat FIH, which makes non-Apple mobile devices, it also has finalised a deal with Dixon Technologies (also eligible for PLI) to assemble the phones.
Google’s growing market share
However, Google is just a minor player in the global mobile sweepstakes. In Q1 2024 it had a negligible share of 0.25 per cent globally compared to Apple which was at 17 per cent according to Counterpoint Research. It is also a very small player in India. In 2023 its share in the country was only 0.25 per cent, which was double the share of the previous year.
Counterpoint projected that the latest development would help Google push the pedal and grow by 39 per cent in 2024. They estimate that it will be able to sell anything between 600,000 to 700,000 phones in India in a year once it starts assembling in India.
First Published: Aug 14 2024 | 3:22 PM IST
