Google to make Pixel smartphones at Foxconn, Dixon facilities from September

Internet major Google will partner with Foxconn to produce its ultra-premium Pixel smartphones for the first time in Tamil Nadu, Chief Minister MK Stalin said on Thursday.

According to sources, Google's partnership with Foxconn is in addition to its plan to make Pixel smartphones at the Dixon facility.

"As a result of the negotiations, Google will partner with Foxconn in Tamil Nadu to produce the Pixel cell phones and has offered to set up a factory," Stalin said in a statement.

According to the sources, Google will also export smartphones from India.

"Dixon will also make Pixel smartphones under an arrangement with Compal Electronics which makes Google's devices," a source said on condition of anonymity.

The production will start in September and the export will begin once the production stabilises, another source said.

Emails seeking comments from Google and Foxconn in this regard did not elicit any immediate response.

The company had announced plans to make Pixel smartphones in India in October.

Counterpoint Research estimated Google Pixel's share in the Indian smartphone market at 0.04% during the March 2024 quarter.

"Google is estimated to register healthy growth of 30% annually in 2024 owing to two reasons—Google has started manufacturing entire series domestically, which will help it save in import duties and sell cost-effectively.

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"Secondly, the growing premiumisation trend will work in favour of Google boosting growth for the only devices with flagship Android experiences in the market supported by strong ATL promotions," said Neil Shah, VP Research, Counterpoint Research.

As per Cybermedia Research, Google Pixel has less than one per cent market share in India.

"Google is finally waking up to India's attractive domestic market as well as its potential as a global export hub. The move to make Pixels in India comes at at time when a premiumisation trend surging through the smartphone market. In addition to manufacturing, Google will need to address other parts of the puzzle, including marketing and post-sales support, including a strong service network.

"With this, Google can potentially emulate the success of other smartphone giants in India," said Prabhu Ram, Head- Industry Intelligence Group (IIG), CyberMedia Research.