2024 in Review: The Year Pixels and iPhones Tasted Success in India

India has become a popular destination for companies looking for smartphone Original Equipment Manufacturers (OEMs), with Apple taking the lead in establishing partnerships and supply chains. The country's robust economic performance and growing number of affluent buyers have created big opportunities for manufacturers. 

This year Google also began to assemble the Pixel 8 locally, in a big push for domestic smartphone manufacturing.

Apple and Google's Market Share in India

In terms of global production distribution, Apple currently manufactures around 15 per cent of its smartphones in India. The production of Pixel smartphones in India represents a notably smaller per cent of Google’s global manufacturing output, according to data from Counterpoint Research. 

Also read: 2024 in Review: Make in India Surges, With Semiconductors Sharply in Focus

The top countries where iPhones are manufactured are China, India, Vietnam, and Brazil. 

"...This has driven the premiumisation of the smartphone market, resulting in an increase in potential demand. Additionally, India boasts a large working-age population and a relatively affordable labor force compared to other major manufacturing nations," Shubham Singh, Analyst, Counterpoint Research, told Acko Byte.

India May Become Apple's Third- Largest Market By 2026

According to projections from Counterpoint Research Market Outlook, India is likely to outpace both Japan and the UK to establish itself as Apple's third-largest market by device shipments in 2026.

"The reason iPhone 16 Pro models were cheaper than 15 Pro models was due to local manufacturing as the cost of importing components is less than that of finished units. Apple enjoys stronger brand loyalty and a premium brand image compared to Google. I do not think Google will follow in Apple's footsteps and expand in a similar fashion in India," Abhilash Kumar, Industry Analyst, TechInsights, told Acko Byte.

"Mitigating reliance on China, given current trade tensions, is a primary driver. Additionally, government incentives and low labour costs are contributing factors," Kumar noted.

Google and its Assembly Partners in India

Google started local assembly for its Pixel 8 smartphones through its manufacturing partner, Wowtek Technology India, this year. This move leverages Wowtek's manufacturing facility in Tamil Nadu. 

Wowtek Technology India operates as a subsidiary of Bharat FIH, which is affiliated with Hon Hai Technology Group, popularly known as Foxconn.

Google's Manufacturing Capacity

Google's manufacturing partners Bharat FIH and Dixon have total  annual manufacturing capacities exceeding 40 million and 45 million units, respectively, Acko Byte has learnt.

According to TechInsights, Google's smartphone market share in India is less than one per cent, while Apple's share was less than 10 per cent in the third quarter (Q3) of 2024. 

Apple and Google's Roadmaps

Market analysts predict that Apple's device shipments in India will exceed 11 million units in 2024, representing a 10 per cent year-over-year increase. The forecast anticipates maintaining this 10 per cent growth trajectory through 2025.

"Google’s Tensor chipset has experienced negative publicity due to overheating especially in India's extreme climate in different parts. Google might need additional efforts to be where Apple is currently," Singh further noted.