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 the 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 accomplice Flipkart. It additionally launched three walk-in service facilities to enhance after-sales.
Nonetheless, important challenges stay for the Android maker, which at the moment 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 big beneficiary of this development. The Cupertino firm dominated the Indian smartphone market’s super-premium phase ($800+) with 83% year-on-year progress, per IDC.
Google is focusing 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 the moment 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.
In line with IDC knowledge shared solely 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 inexpensive Pixel A sequence isn’t a mainstream gadget 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 complete smartphone shipments in India in 2023.
“This sequence has helped Google develop its attain within the nation,” Tarun Pathak, analysis director at Counterpoint, informed TechCrunch. “Its affordability enabled Google to faucet right into a broader viewers.”
“Big high-decibel advertising and marketing spending” wanted
For the previous couple of months, Google has widened its India footprint. The corporate began assembling the Pixel 8 smartphones domestically to attraction to the Indian authorities, which actively pushes manufacturers to assist make the South Asian nation a world manufacturing hub. Google’s growth of its gross sales channels and after-sales within the nation are additionally key.
Nonetheless, market consultants consider 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 finish of the market is seeing wholesome progress, pushed primarily by Apple, but it surely positive is proof of a small however rising phase of customers who’ve the urge for food to spend. Google wish to take some share from this phase with its digital camera capabilities and AI-focused OS. After all, this would want enormous high-decibel advertising and marketing spending to achieve a significant market share and client mindshare,” Navkendar Singh, affiliate vice chairman at IDC, informed TechCrunch.
Singh added that Google must develop its gross sales channels to broaden its client base within the nation, the place on-line transactions represent a single-digit proportion of retail gross sales.
“Solely on-line and restricted offline presence will not be a viable long-term technique in India, the place customers nonetheless really feel the necessity to contact and really feel the units, particularly within the premium phase,” he stated. “Google has to make inroads within the offline channel to attraction to Samsung A sequence and S sequence customers within the premium retail shops in India’s prime 20-30 cities.”
Analysts consider that Google’s choice to start with the 2 preliminary offline channels, alongside its on-line exclusivity with Flipkart, might assist the smartphone vendor considerably.
“With this multichannel method, we are able to anticipate elevated progress and adoption,” Pathak of Counterpoint stated.
Counterpoint forecasts the Pixel sequence to stay under 1% share in India, with the Pixel A fashions persevering with to drive Google’s progress.
The first cause for Google to proceed to have minimal curiosity from consumers in India is its pricing.
“This isn’t nice pricing,” asserted Singh. “Completely out of sync. It appears Google needs to maintain their margins.”
Google additionally gives a bunch of AI options on its new Pixel telephones to draw clients. Nonetheless, Singh believed customers do not make a selection based mostly on AI options or holding off purchases for such options.
“Within the medium to long run, AI options will play an vital function in buy pull, particularly within the premium phase, extra so if and when Apple decides to convey AI on-device to its iPhone,” he stated.