Google is actively seeking suppliers in India to assemble its Pixel smartphones, aiming to diversify its production beyond China. Following in the footsteps of Apple, Google’s move to manufacture in India comes as part of a broader trend among global technology giants to explore alternatives to China for smartphone production, especially amid the challenges posed by the COVID-19 pandemic and stringent trade policies.
Reports suggest that Google has initiated discussions with potential partners, including Indian companies Lava International Ltd. and Dixon Technologies India Ltd., as well as Bharat FIH, the Indian unit of Foxconn Technology Group. Executives from Google, including Ana Corrales, the operating chief of its consumer hardware division, and Maggie Wei, a senior director of global sustaining product operations, visited India recently to hold partnership talks.
Apple has already been manufacturing iPhones in India for a few years, gradually increasing local production since 2017. The company plans to shift up to 25% of iPhone production to India by 2025, with a further increase to 50% by 2027. Google’s potential partners in India have already secured production-linked financial incentives, which have incentivized local manufacturing and contributed to Apple’s success in the country. Apple’s participation in this program has allowed it to diversify its supplier base in India and significantly boost iPhone output.
India, under the leadership of Prime Minister Narendra Modi, has been actively promoting itself as an attractive manufacturing hub. The country’s ability to navigate the challenges of the COVID-19 pandemic and its ongoing trade war with the United States has positioned it as a viable alternative to China. Prime Minister Modi is expected to visit the US soon, during which discussions regarding the removal of tech trade barriers between the two countries are anticipated.
Aside from smartphones, India is a key growth market for Google’s services. Local assembly of Pixel smartphones could help drive up sales in India, and if successful, Google may consider shifting production of other hardware products, such as speakers, to the country. However, it is important to note that the outcome of Google’s ongoing discussions is uncertain, and the company may decide not to proceed with manufacturing Pixel smartphones in India.
