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Rohan Kute
Business | infograph... • 2m
Why Google Is Considering India for Pixel Production? Alphabet Inc., the parent company of Google, is in talks with Dixon Technologies and Foxconn to move part of its Pixel smartphone production to India. This shift is mainly for phones that will be exported to the United States. *What’s Driving the Shift?* The main reason is the possibility of high tariffs on products from Vietnam, where most Pixel phones are currently made. The US has proposed raising tariffs on Vietnamese imports to 46%, while the tariff on Indian imports is lower at 26%. This makes India a more cost-effective option. *Local Manufacturing Plans* Google is also planning to start sourcing some components within India. This includes items like phone cases, chargers, fingerprint sensors, and batteries. Currently, most of these parts are imported, even for phones made in India. Pixel phones are already being made in India, but only for local customers. Dixon produces newer models at its Noida facility, in partnership with Taiwan’s Compal Electronics. Foxconn, working from Tamil Nadu, makes older models. Together, they produce about 43,000 to 45,000 phones a month. Google initially intended to expand production in India gradually over a few years. However, the recent changes in US trade policy have pushed the company to speed up these plans. *Pixel's Market Presence* In India, Pixel has a small market share due to its high price, though sales have improved recently with offline retail expansion. In the US, Pixel has performed better, reaching a 14% market share after its latest model launch.
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