On Tuesday, on the Google Made by Google occasion, Google introduced that the brand new Pixel 9 sequence is coming to India. The information additionally sees the corporate’s new foldable telephone launching for the primary time on the earth’s second-largest smartphone market.
Google is increasing its gross sales channels within the nation by partnering with two offline retail chains – Tata Group’s Croma and Reliance’s retail arm Reliance Digital – in addition to its long-term on-line companion Flipkart. It has additionally launched three door-to-door service facilities to enhance after-sales service.
Nevertheless, the Android maker nonetheless faces vital challenges, with its market share in India at the moment being lower than 1%.
Information of the Pixel 9 comes at a time when gross sales of high-end merchandise are rising in India, whereas gross sales of lower-end merchandise are declining. Apple is a notable beneficiary of this pattern. The Cupertino firm dominates the ultra-premium phase ($800+) of the Indian smartphone market with 83% year-on-year progress, in response to IDC.
Google’s Pixel 9 sequence targets this phase, with the common Pixel 9 beginning at INR 79,999 (roughly $950). In the meantime, the iPhone 15 at the moment begins at INR 79,600 (roughly $950) for the bottom iPhone 15 and goes as much as INR 193,500 (roughly $2,300) for the iPhone 15 Professional Max.
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Google has been promoting Pixel telephones in India for a while, though it solely lately began specializing in the nation.
In keeping with knowledge shared solely with TechCrunch by IDC, Google’s smartphone shipments in India will develop from 47,000 models in 2020 to 665,000 models in 2023, a progress of greater than 1,300%. the bottom stage. The inexpensive Pixel A sequence dominates Google gross sales, accounting for 65% share in 2023.
Nonetheless, even the cheaper Pixel A sequence is not a mainstream machine within the nation, with the Pixel 8a beginning at INR 52,999 (about $630). In keeping with the analyst agency, the entry-level premium ($200-$400) phase leads the Indian market with a 30% share.
Information from Counterpoint Analysis helps IDC’s findings, with the Pixel smartphone sequence accounting for 1% of India’s high-end market and 0.25% of the general smartphone market.
Counterpoint’s evaluation exhibits that the Pixel A sequence will account for 73% of all Google’s smartphone shipments in India in 2023.
“This sequence has helped Google develop its presence within the nation,” Counterpoint analysis director Tarun Pathak informed TechCrunch. “Its affordability has enabled Google to achieve a wider viewers.”
Requires “big high-decibel advertising spend”
Google has expanded its presence in India over the previous few months. The corporate began assembling Pixel 8 smartphones domestically to enchantment to the Indian authorities, which has aggressively pushed manufacturers to assist the South Asian nation turn out to be a worldwide manufacturing hub. It’s also important for Google to develop gross sales channels and after-sales service within the nation.
Nonetheless, market specialists imagine that Google wants to take a position extra in India to enhance its advertising and compete with the likes of Apple and Samsung.
“The high-end market is rising healthily, pushed by Apple, nevertheless it does show {that a} small however rising phase of customers are prepared to spend. Google hopes to make the most of this with its digital camera capabilities and synthetic intelligence-focused working system.” to achieve some share within the house. After all, this requires big high-decibel advertising spend to achieve significant market share and client mindshare,” Navkendar Singh, vice chairman at IDC, informed TechCrunch.
Singh added that Google must develop its gross sales pipeline to develop its client base within the nation, the place on-line transactions solely account for a single-digit share of retail gross sales.
“Solely on-line and restricted offline presence just isn’t a viable long-term technique in India as Indian customers nonetheless really feel the necessity to contact and really feel units, particularly within the premium phase,” he stated. “Google should faucet into offline channels , to draw Samsung A sequence and S sequence customers in high-end retail shops within the high 20-30 cities in India.”
Analysts imagine Google’s determination to start out with two preliminary offline channels, coupled with its on-line exclusivity with Flipkart, may assist the smartphone vendor.
“With this multi-channel strategy, we are able to anticipate elevated progress and adoption,” stated Counterpoint’s Pathak.
Counterpoint predicts that the Pixel sequence’ share in India will stay beneath 1%, and the Pixel A fashions will proceed to drive Google’s progress.
The principle cause why Google has proven little curiosity amongst Indian consumers is its pricing.
“This isn’t a great worth,” Singer asserted. “Completely out of sync. Google appears to wish to keep earnings.
Google can be providing a spread of synthetic intelligence options on its new Pixel telephones to draw clients. Nevertheless, Singer believes that buyers is not going to make selections based mostly on AI options and won’t delay buying such options.
He stated: “Within the medium to long run, synthetic intelligence capabilities will play an necessary function in driving purchases, particularly within the high-end market, particularly if Apple decides to introduce synthetic intelligence units to iPhone.”
