Alphabet Stock (GOOGL) Shoots Higher as it Looks to Make Apple (AAPL) Stew in India

Shares in Alphabet (GOOGL) were higher today as it took the smartphone fight to Apple (AAPL) in India by launching direct online sales.

Direct Sales

The company said sales of its popular hardware devices such as Pixel phones, watches and earbuds were now available for Indian customers to buy on the official Google Store website. The company currently sells its products in India through authorised retailers and via the Walmart (WMT)-backed e-commerce platform Flipkart.

The launch comes ahead of an expected opening of Google’s first ever physical stores in the country. Google is said to be close to deciding on locations. When opened they will mark the first they have built outside of the United States.

Huge rival Apple already sells its phones such as the iPhone directly to Indian users and has its own stores in Mumbai and New Delhi. It is looking to open more stores in India and meet the demand from its huge 1.4 billion population and increasingly affluent middle class.

The fast-growing Indian market has about 712 million smartphone users currently.

Price Advantage

Google will be hoping that its slightly cheaper phone will give it an advantage in India. Pixel phones in India cost from about $360 to $1,900 for top-end models. Apple’s iPhones cost from about $520-$2,100.

According to 2024 industry figures, Apple dominated the local market for premium phones, priced above $520, with a roughly 55% share, compared with Pixel’s 2% share.

Google isn’t just looking at retail opportunities. It has also started making Pixel smartphones in India. Again this mirrors Apple, which is ramping up production of its iPhone in India as it looks to diversify its supply away from China because of tariffs and geopolitical concerns.

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