Compal reportedly divides Pixel smartphone production order with India-based Dixon

Jingyue Hsiao, DIGITIMES Asia, Taipei 0


India-based Dixon Technologies reportedly will make Google's Pixel 8 smartphones starting in September following a deal signed between Taiwan-based Compal and Padget, Dixon Technologies' subsidiary.

The Economic Times reported that Padget will start producing Pixel 8 smartphones in September. Initially, production will be limited, but it is expected to reach a monthly capacity of 100,000 units with 25-30% of these units being exported from India.

At the latest earnings call held in mid-April, Atul B. Lall, managing director of Dixon Technologies, said the company had begun ramping up production for the festive season, adding that manufacturing for Compal is expected to commence by September. Lall did not elaborate on what products Dixon would make for Compal at the earnings call, and unnamed sources told the Economic Times that the move followed an agreement between Padget and Compal to make mobile phones in India, as Padget offered competitive prices to Google thanks to the Production Linked Incentive (PLI) scheme incentives, for which Padget is eligible.

According to Bloomberg data, in the fourth quarter of 2023, Pixel phone production orders were mainly split between two companies. Compal received over 70% of the orders, while Foxconn secured 25%. Other companies shared less than 5% of the remaining Pixel production orders. Taiwan-based ODM Compal did not make mobile phones other than Pixel smartphones in the quarter. All the over two million phones produced by Compal in the fourth quarter were Pixel smartphones. Pixel smartphones are also made in China and Vietnam.

In the first quarter of 2024, Pixel smartphone shipments in India reached only 50,000 units. Given Padget's target production capacity of 300,000 units per quarter, the export ratio of Pixel phones produced in India is expected to exceed the reported 25-30%, as the production capacity surpasses domestic market sales.

Business Standard reported that smartphones have become India's fourth largest export item, growing by 42% to reach US$15.6 billion in fiscal 2024 (April 2023 to March 2024). Data from the Commerce Department of India shows that this increase was driven by a 158% rise in shipments to the US, totaling US$5.6 billion, followed by the United Arab Emirates, the Netherlands, and the UK.

The report quoted data from the Indian Cellular and Electronics Association saying that the total value of mobile devices produced in India for export and domestic markets in fiscal 2024 soared to INR4.1 trillion (US$49.2 billion), a 17% increase year-on-year.

Dixon's customers in mobile phones





Padget Electronics

Xiaomi, Jio, Tecno, iTel, Infinix, LYF, Realme, Nokia, Karbonn, Motorola, Google

Source: Bureau of Indian Standards, May 2024

Source: Bloomberg, May 2024

Source: Bloomberg, May 2024