Google to start manufacturing smartphones in India with Pixel 8
What's the story
Google has announced its plans to start manufacturing its Pixel smartphone series in India, starting with the latest Google Pixel 8 model.
Rick Osterloh, Senior VP of Devices and Services at Google, shared that the company aims to ship the first batch of locally made Google Pixel devices next year.
This decision comes on the heels of Google's partnership with HP to produce Chromebook laptops in India, as tech giants increasingly focus on the South Asian market for device manufacturing.
Details
India's manufacturing incentives attract tech giants
The Indian government is actively enticing global companies to set up manufacturing bases in the country by offering billions of dollars in incentives.
This approach comes as many firms, including Apple, seek to decrease their dependence on China for manufacturing devices.
Analysts call this trend the "China+1" strategy, which aims to diversify production locations.
Meanwhile, Apple has already started locally assembling iPhones in India and now produces its newest models in the country.
What Next?
Growing domestic demand and policy support
India's electronics manufacturing services (EMS) industry is set for strong medium-term growth, thanks to rising domestic demand and government support through policy measures like lower taxes and production-linked incentive schemes, per Macquarie analysts.
Their analysts point out that opportunities exist for both original design manufacturers (ODMs) and original equipment manufacturers (OEMs) that supply branded products and plan to integrate with select component manufacturing.
Key players in this space include Dixon Technologies, Amber Enterprises, and PG Electroplast.
Insights
Competing with Apple's local production
Google is collaborating with domestic and international manufacturers for Pixel smartphone production in India.
This initiative comes as its rival, Apple, is increasing local production of its flagship iPhones.
India aims to become a global hub for electronics manufacturing, with plans to produce $300 billion worth of products by 2025-26.
Google's entry into the Indian manufacturing sector will further bolster the country's efforts to attract tech giants and establish itself as a major player in the global electronics market.