Alphabet Chooses Dixon Tech for Google Pixel 8 Production in India

Alphabet Inc., parent company of Google, has chosen Dixon Technologies, a local contract manufacturer, to produce its high-end Pixel 8 smartphones in India. The Economic Times reports that trial production is already underway, with the first batch of domestically manufactured Pixel 8 phones expected to be released in September.

Trial production of the super-premium phone has begun, as reported by Economic Times based on insider information. The initial batch of these domestically manufactured devices is anticipated to be released by September, according to the report.

According to sources speaking to the Economic Times, Google aims to leverage Indian manufacturing to fulfill both domestic and export market demands. The report further states that Google has been negotiating with multiple potential manufacturing partners for over a year before settling on Dixon Technologies.

Sources claimed, “Dixon has been chosen to make Pixel in India. Trial production is expected to begin soon. Google wants to use India production for catering to needs of domestic market and potentially for exports as well."

This comes as Google CEO Sundar Pichai said in October, “We shared plans at #GoogleforIndia to manufacture Pixel smartphones locally and expect the first device to roll out in 2024. We’re committed to being a trusted partner in India’s digital growth — appreciate the support for Make In India."

Dixon Technologies, aiming to capture a larger share of India's vast smartphone market, will manufacture 100,000 Pixel units per month. Of these, 25-30% are slated for export. The Pixel 8, currently accounting for nearly 80% of Pixel sales in India, will be a key model in this push. Dixon's subsidiary, Padget Electronics, has secured a contract with Compal Electronics, a global manufacturing partner for Google, to produce Pixel devices. The agreement, facilitated by the Indian government's production-linked incentive (PLI) scheme, will see Padget manufacture Pixel phones at competitive prices. Currently, Pixel devices are produced in Asian nations like China and Vietnam.

Dixon Technologies, through its partnership with Compal, will commence smartphone manufacturing for a global brand by September, according to managing director Atul Lall. This announcement was made during the company's earnings call on May 15th. Executives also revealed that Alphabet, similar to Apple, intends to gradually expand its production in India. Dixon is poised to manufacture both upcoming Pixel models and older devices within India. Additionally, Alphabet is considering a second manufacturing partner in India. Reports suggest that Google has been in discussions with Foxconn to establish Pixel smartphone production within the country.

Analysts believe Google's latest move is partially driven by a desire to gain a foothold in the Indian market, a feat they've struggled to achieve despite previous efforts. In the ₹50,000-plus price range, where the Pixel competes, consumers tend to favor Apple's iPhones or Samsung's Galaxy devices, according to the analysts. They attribute this preference, in part, to the 22% import duty levied on imported smartphones, which significantly increases their price.

In India's high-end smartphone market (₹50,000 and above), Apple dominated with a 68% share in 2023, followed by Samsung at 21%. While Google's Pixel phones collectively held a 1% share, the company saw a remarkable 147% increase in shipments to India during the year. Notably, nearly all iPhone 15 and 15 Plus models, along with older iPhones sold in India, are now locally manufactured. Samsung's super-premium models also benefit from local production.