Dixon Technologies, a leading local contract manufacturer, announced it will begin producing Alphabet Inc.’s high-end Google Pixel 8 smartphones in India. The initial batch of India-made Pixel 8 phones is expected to hit the market by September, following the commencement of trial production.
Alphabet’s decision to manufacture Google Pixel smartphones in India, announced last October, positions it as the last major global smartphone brand to join the country’s burgeoning smartphone manufacturing sector. Dixon Technologies’ production capacity for Pixel smartphones is set to reach 100,000 units per month, with an estimated 25-30 percent designated for export. This move marks a significant step in Alphabet’s renewed effort to capture market share in India, the world’s second-largest smartphone market.
According to company executives, the Pixel 8 model constitutes nearly 80 percent of all Pixel sales in India. Currently, these devices are manufactured in other Asian countries such as China and Vietnam. The strategic shift to local production is expected to strengthen Google’s position in the Indian market and enhance supply chain resilience.
This development follows Dixon’s subsidiary, Padget Electronics, securing an agreement with Taiwan’s Compal Electronics to manufacture phones for Compal’s clients. Compal is a global manufacturing partner for Google products, and Padget, benefiting from the Indian government’s production-linked incentive (PLI) scheme for mobile phones, has offered competitive production rates to Google.
During Dixon Technologies’ earnings call on May 15, Managing Director Atul B. Lall confirmed that the company would start smartphone manufacturing for a global brand in collaboration with Compal by September, without specifying details at that time.
Executives have indicated that Alphabet, similar to Apple, intends to gradually expand its production operations in India. Dixon might also manufacture upcoming Pixel models and older versions within the country.
Additionally, Alphabet is considering engaging a second manufacturing partner in India, with reports suggesting that Google has been in discussions with Foxconn regarding the production of Pixel smartphones in the region. This strategic move underscores Alphabet’s commitment to strengthening its manufacturing footprint in India and capitalizing on the country’s vast market potential.