Google is currently in discussions to transfer its Pixel production from Vietnam to India in response to US tariff issues. The lower tariff rates in India would make Pixel devices more affordable for American consumers.
Additionally, Google aims to localize more of the Pixel components in India to further cut costs and mitigate geopolitical risks. The company had only recently shifted its production base from China to Vietnam in 2019 amid escalating trade tensions.
Now, it appears that another significant shift is underway, with reports from the Economic Times indicating that Google has been in talks with Indian manufacturing partners like Foxconn and Dixon Technologies. This change primarily targets Pixel devices meant for the United States, given the recent tariffs imposed on imports from Vietnam.
Currently, Google produces some Pixel models in India for the local market. Most of Google’s Pixel manufacturing is done in Vietnam, a move initiated to escape the tariffs that were applied to goods from China.
As nearly all imports, including those from Vietnam, are subject to tariffs—46% for Vietnam and a staggering 145% for China—Google is compelled to reconsider its manufacturing strategies. With a temporary 90-day delay on the tariff implementation for phones and computers, the company aims to preemptively adapt its operations.
By relocating production to India, Google could benefit from the country’s significantly lower 26% tariff rate, making the prices less burdensome for U.S. customers. Already, Indian facilities are producing between 43,000 and 45,000 Pixel phones monthly, which would expand dramatically with the proposed shift.
Moreover, Google is focused on sourcing more Pixel components locally in India, such as enclosures, fingerprint sensors, batteries, and chargers, which are currently imported from China. This localization effort could streamline operations and shield the company from geopolitical uncertainties.
In recent years, Google has established a strong global presence with its Pixel line, ranking behind just Samsung and Apple in mobile device popularity. While the company has yet to confirm these production changes publicly, a noticeable increase in Pixel production in India is anticipated.
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