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 marketplace 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 presently 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 section ($800+) with 83% year-on-year development, per IDC.
Google is focusing on the section with the Pixel 9 collection, 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, presently 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 this point
Google has been promoting its Pixel telephones in India for fairly a while, although it solely lately began specializing in the nation.
In line with IDC information shared solely with TechCrunch, Google’s smartphone shipments in India grew over 1,300% to 665,000 models in 2023, up from 47,000 models in 2020. Nonetheless, the corporate’s total market share remained minimal at 0.5%. The inexpensive Pixel A collection has dominated Google’s gross sales, with a 65% share in 2023.
Nonetheless, even the inexpensive Pixel A collection isn’t a mainstream machine within the nation, with the Pixel 8a beginning at 52,999 Indian rupees (~$630). The entry-premium ($200-$400) section 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 section, with a 0.25% share within the total smartphone market.
Counterpoint’s evaluation exhibits the Pixel A collection accounted for 73% of Google’s total 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 domestically to enchantment to the Indian authorities, which actively pushes manufacturers to assist make the South Asian nation a worldwide manufacturing hub. Google’s growth of its gross sales channels and after-sales within the nation are additionally key.
However, market consultants consider Google must spend far 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 vice chairman at IDC, instructed TechCrunch.
Singh added that Google must increase 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.
“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 consider 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 collection 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 do not make a selection 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.
