Google begins assembling Pixel 8 in India

Business Business. Taking a major step towards manufacturing in India, Google has started assembling Pixel 8 phones through Wowtech Technology India Pvt Ltd, a subsidiary of India 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 hopes to shift the bulk of the assembly of its new 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 rising US-China tensions. Google yesterday announced the global launch of its latest Pixel 9 smartphone. Speaking on this development, a top Meity official said, “In the initial stages, they will make a limited number of phones. But once the 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, this is the same strategy that Apple has adopted to move a major part of iPhone assembly to India.” Spokespersons for India FIH and Google did not respond to queries. PLI scheme challenges for India FIH India 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 met the production value and investment target required for eligibility.

In fact, Xiaomi, one of the largest original equipment manufacturers, has significantly reduced its dependence on India FIH and has 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 almost double the original requirement for assembling iPhones in the country and leverage it through its contract with Google. In its discussions with the government it has also committed to create 100,000 direct jobs (from 50,000 currently) on its own. “Foxconn has big plans and has expanded its manufacturing capacity in the country,” the MeitY official said. It has been decided to double the capacity. It will also create a total of Rs 1 lakh worth of jobs in the country.” In October 2023 Google announced that it would assemble Pixel phones in India and is looking for vendors. While it identified India FIH, which makes non-Apple mobile devices, it has finalised a deal with Dixon Technologies (also eligible for PLI) to assemble the phones. Google’s growing market share Google, however, is a minor player in the global mobile sweepstakes. According to Counterpoint Research, its share globally in Q1 2024 was a negligible 0.25 per cent compared to Apple, which was at 17 per cent. It is also a very small player in India. Its share in the country in 2023 was just 0.25 per cent, double its share in the previous year. Counterpoint estimated that the latest development will help Google grow to 39 per cent in 2024. They estimate that once assembling starts in India, it will reach 100 per cent of its mobile market in India in a year. Will be able to sell 600,000 to 700,000 phones.