Alphabet had announced in October last year that it will make Google Pixel smartphones in India. It's the only large global smartphone brand that was missing from the make-in-India drive in smartphones.
Dixon's Pixel capacity will be 100,000 units per month with 25-30% to be exported as it makes a fresh attempt to gain market share in India, the world's second largest smartphone market. The Pixel 8 model accounts for almost 80% of all Pixels sold in India, executives said.
The devices are currently made in Asian nations such as China and Vietnam. The move follows the Indian company's wholly owned subsidiary Padget Electronics signing an agreement with Taiwan's Compal Electronics to make phones for the latter's customers. Compal is a manufacturing partner for Google products globally, said the executives cited above.
Padget, a beneficiary of the government's production-linked incentive (PLI) scheme for mobile phones, will make the Pixel devices and has offered competitive production prices to Google, an executive said.
Alphabet, Dixon and Compal didn't respond to queries.
Plan to Expand Production in Phases
Dixon Technologies managing director Atul Lall told analysts on May 15 during the company's earnings call that it will begin manufacturing smartphones for a global brand through Compal by September. He hadn't given any details at the time.
The executives cited said Alphabet has plans, like Apple, to expand production in India in phases.
Dixon may also make upcoming Pixel models in the country as well as older devices. Alphabet may also consider a second manufacturing partner in India, they said. It's been reported that Google has been in talks with Foxconn to make Pixel smartphones in India.
Google's move is