Google Parent Considering Moving Pixel Smartphone Manufacturing to India

According to reports, Alphabet, the parent company of Google, is in advanced negotiations to move some of the manufacturing of its Pixel smartphones from Vietnam to India. According to a media report, two weeks ago, Alphabet concluded the initial round of talks with its contract manufacturers, Foxconn and Dixon Technologies.

A media house has also been informed by two industry officials that the corporation intends to localise the production of certain smartphone components, including batteries, chargers, fingerprint sensors, and enclosures. The majority of components are currently imported from the United States. Since President Donald Trump imposed significant tariffs on Vietnam, the Pixel manufacturer intends to be on the safer side.

Trade War Between the US and Vietnam Calling for the Shift

While the United States announced a 46% duty on Vietnamese imports, India is subject to a far lower rate of 26%. The 10% baseline tariffs remain in effect even though Trump declared on April 9 that reciprocal duties would be suspended for 90 days.

However, China had no reprieve. The Trump-led administration maintained the 145% penalty on the Asian economic powerhouse as a form of retribution against the US reciprocal tariff policy, even though other countries were excluded from it. In 2023, the firm announced that it would start producing its Pixel 8 series smartphones in India.

A year later, it signed a contract with Dixon Technologies, a local contract manufacturer, to begin production. Last year, the multinational tech giant began negotiations with Foxconn to build its Pixel series.

Google and Apple Locking Horns on India

At the time of Google's partnership with Dixon, it was determined that the contract manufacturer would produce one lakh Pixel smartphones in the country each month. Out of those, approximately 25% to 30% of the units are scheduled for export.

 Foxconn has been producing 43,000 to 45,000 units per month for Alphabet, according to a media report. This initiative coincides with rival Apple's plans to boost its iPhone manufacture in India. The goal of Foxconn, the Indian contract maker of iPhones, is to boost production from 12 million to 25 million handsets. The nation's electronic manufacturing sector is poised to grow into a massive potential.

 At the moment, the nation produces roughly 33 crore mobile phones. As per the Economic Survey 2024-25, India has reduced its dependency on imports of cellphones since 99% of them are manufactured in India alone.

Some Pixel units are manufactured in China in addition to Vietnam and India. In an attempt to lessen its dependency on Chinese manufacturing, Google moved the production of Pixels to Vietnam in 2023, mostly through Foxconn and Compal. According to reports, last year almost half of all high-end Pixel models were put together in Vietnam.