On Tuesday at its Made by Google occasion, Google introduced that the brand new Pixel 9 line is coming to India. The information additionally finds the corporate’s new foldable launching on this planet’s second largest smartphone market for the primary time.
Google is increasing its gross sales channels within the nation by partnering with two offline retail chains — Tata Group-owned Croma and Reliance’s retail subsidiary Reliance Digital — alongside its long-standing on-line associate Flipkart. It additionally launched three walk-in service facilities to enhance after-sales.
Nonetheless, important challenges stay for the Android maker, which at present has lower than 1% share in India.
The Pixel 9 information arrives as premium product gross sales are rising in India, on the expense of their low-end counterparts. Apple has been a major beneficiary of this development. The Cupertino firm dominated the Indian smartphone market’s super-premium phase ($800+) with 83% year-on-year development, per IDC.
Google is concentrating on the phase with the Pixel 9 sequence, which begins at 79,999 Indian rupees (~$950) for the common Pixel 9. The road tops out at 172,999 Indian rupees (~$2,060) for the Pixel 9 Professional Fold. The iPhone 15, in the meantime, at present begins at 79,600 Indian rupees (~$950) for the bottom iPhone 15 and goes for as a lot as 193,500 (~$2,300) for the iPhone 15 Professional Max.
The story to date
Google has been promoting its Pixel telephones in India for fairly a while, although it solely not too long ago began specializing in the nation.
Based on IDC information shared completely with TechCrunch, Google’s smartphone shipments in India grew over 1,300% to 665,000 items in 2023, up from 47,000 items in 2020. Nonetheless, the corporate’s total market share remained minimal at 0.5%. The reasonably priced Pixel A sequence has dominated Google’s gross sales, with a 65% share in 2023.
Nonetheless, even the cheaper Pixel A sequence isn’t a mainstream machine within the nation, with the Pixel 8a beginning at 52,999 Indian rupees (~$630). The entry-premium ($200-$400) phase leads the Indian market with a 30% share, per the analyst agency.
Information from Counterpoint Analysis backs up IDC findings, with the Pixel smartphone vary capturing a 1% share in India’s premium phase, with a 0.25% share within the total smartphone market.
Counterpoint’s evaluation exhibits the Pixel A sequence accounted for 73% of Google’s whole smartphone shipments in India in 2023.
“This series has helped Google expand its reach in the country,” Tarun Pathak, analysis director at Counterpoint, instructed TechCrunch. “Its affordability enabled Google to tap into a broader audience.”
“Huge high-decibel marketing spending” wanted
For the previous couple of months, Google has widened its India footprint. The corporate began assembling the Pixel 8 smartphones regionally to enchantment to the Indian authorities, which actively pushes manufacturers to assist make the South Asian nation a world manufacturing hub. Google’s enlargement of its gross sales channels and after-sales within the nation are additionally key.
However, market specialists imagine Google must spend rather more cash in India to enhance its go-to-market and compete with the likes of Apple and Samsung.
“The premium end of the market is seeing healthy growth, driven mainly by Apple, but it sure is evidence of a small but growing segment of consumers who have the appetite to spend. Google would like to take some share from this segment with its camera capabilities and AI-focused OS. Of course, this would need huge high-decibel marketing spending to gain a meaningful market share and consumer mindshare,” Navkendar Singh, affiliate vp at IDC, instructed TechCrunch.
Singh added that Google must broaden its gross sales channels to broaden its client base within the nation, the place on-line transactions represent a single-digit share of retail gross sales.
“Only online and limited offline presence is not a viable long-term strategy in India, where consumers still feel the need to touch and feel the devices, especially in the premium segment,” he mentioned. “Google has to make inroads in the offline channel to appeal to Samsung A series and S series consumers in the premium retail stores in India’s top 20-30 cities.”
Analysts imagine that Google’s determination to start with the 2 preliminary offline channels, alongside its on-line exclusivity with Flipkart, might assist the smartphone vendor considerably.
“With this multichannel approach, we can anticipate increased growth and adoption,” Pathak of Counterpoint mentioned.
Counterpoint forecasts the Pixel sequence to stay under 1% share in India, with the Pixel A fashions persevering with to drive Google’s development.
The first purpose for Google to proceed to have minimal curiosity from patrons in India is its pricing.
“This is not great pricing,” asserted Singh. “Absolutely out of sync. It seems Google wants to keep their margins.”
Google additionally presents a bunch of AI options on its new Pixel telephones to draw prospects. Nonetheless, Singh believed customers don’t make a alternative based mostly on AI options or holding off purchases for such options.
“In the medium to longer term, AI features will play an important role in purchase pull, especially in the premium segment, more so if and when Apple decides to bring AI on-device to its iPhone,” he mentioned.
