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Summary
- Google is in talks to move Pixel production from Vietnam to India due to US tariffs.
- India’s lower tariffs make Pixel devices more affordable for US customers.
- Google plans to localize more Pixel components in India to reduce costs and geopolitical risks.
It feels as if Google had just moved production from China to Vietnam in the wake of a trade war. But that was 2019. Now, Google is in talks to move production of Pixel devices yet again, this time to India.
Related
According to a new report from the Economic Times, Google recently held discussions with its Indian manufacturing partners, including Foxconn and Dixon Technologies (via 9to5Google). This move is specifically for Pixel devices destined for the United States thanks to recent tariffs slapped on goods imported from Vietnam. Google already builds some Pixel models in India for the local market.
Vietnam to India is a big shift for US-bound Pixels
Most of Google’s Pixel manufacturing is currently done in Vietnam. Google moved production there from China in the wake of Donald Trump’s tariffs back in 2019. But new tariffs on nearly every country in the world are driving Google to reconsider. Goods imported from China face a 145% tariff in the US, and those from Vietnam face 46% tariffs. There was a temporary 90-day delay on tariffs on phones and computers, but Google is taking no chances.
India’s lower 26% tariff rate will be less of a shock for customers in the US. According to the report, Indian plants are already producing between 43,000 and 45,000 Pixel phones per month for the domestic Indian market. This shift from Vietnam would expand that significantly.
Google is also working to localize more of the Pixel’s components in India, including enclosures, fingerprint sensors, batteries, and chargers. Right now, many of these parts are imported from Chinese producers. Increasing local production of key parts could reduce costs and simplify logistics for Google. It could also help insulate the company from geopolitical uncertainty.
More Pixels built in India coming soon
Google hardware has become global over the past few years. The Pixel line is one of the most popular mobile devices in the world, only behind Samsung and Apple devices. The company needs to remain nimble to avoid supply chain instability caused by a global trade war.
The company has not publicly confirmed these reports. However, it suggests a significant increase in Pixel production is already happening in India, and will only intensify.
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