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Google and Foxconn team up to manufacture Pixel smartphones in Tamil Nadu



Google and Foxconn team up to manufacture Pixel smartphones in Tamil Nadu

In a landmark announcement, Google has confirmed its partnership with Foxconn to produce its high-end Pixel smartphones in Tamil Nadu. Chief Minister M K Stalin revealed this development on Thursday, marking Google’s initial foray into manufacturing Pixel phones in the region.

Expanding production footprint

Google’s collaboration with Foxconn is set to enhance its current manufacturing plans at the Dixon facility. Chief Minister Stalin stated, “As a result of the negotiations, Google will partner with Foxconn in Tamil Nadu to produce Pixel cell phones and has offered to set up a factory.”

In addition to domestic production, Google intends to export these smartphones from India. An anonymous source indicated, “Dixon will also make Pixel smartphones under an arrangement with Compal Electronics, which manufactures Google’s devices.”

Production timeline and export plans

Production at the Foxconn facility is scheduled to begin in September, with exports following once production stabilizes, according to another source. Requests for comments from Google and Foxconn were not immediately answered. Google had previously announced its intention to manufacture Pixel smartphones in India last October.

Market impact and growth projections

Google Pixel currently holds a modest 0.04 percent share in the Indian smartphone market, based on data from Counterpoint Research for the March 2024 quarter. However, substantial growth is anticipated. Neil Shah, VP of Research at Counterpoint Research, projects a 30 percent annual growth for Google in 2024, driven by domestic manufacturing that reduces costs and the rising trend of premiumization in the smartphone market.

“Domestic manufacturing will help Google save on import duties, making sales more cost-effective. The premiumization trend will benefit Google, enhancing growth for flagship Android devices,” Shah noted.

Strategic positioning in India

Prabhu Ram, Head of Cybermedia Research’s Industry Intelligence Group, acknowledged Google’s current market share in India is less than one percent but emphasized the strategic importance of the manufacturing move. “Google is recognizing India’s market potential and export capabilities. Beyond manufacturing, Google must focus on marketing, post-sales support, and building a strong service network,” Ram explained.

With these strategic initiatives, Google could emulate the success of other smartphone giants in India.