Google Pixel 9
Alphabet Inc, the parent company of Google, is in talks with its contract manufacturers Dixon Technologies and Foxconn to shift a part of its Pixel smartphone production from Vietnam to India. According to The Economic Times, citing industry sources, the discussions started around two weeks ago. The move comes as Alphabet looks to reduce risks related to global sourcing. The United States recently threatened higher tariffs on imports from Vietnam where most Pixel smartphones are currently made.
While the US had announced a 46% tariff on goods from Vietnam, India faces a much lower 26% rate. Although the US paused the reciprocal tariffs for 90 days starting April 9, a 10% base tariff still applies. Meanwhile, China continues to face the highest rate at 145%, with no relief. This situation has pushed Alphabet to speed up its plan to make India a key global hub for Pixel production—a move that was originally intended to take place over the next two to three years.
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To prepare for this shift, Alphabet has shared plans with Dixon and Foxconn to start making some phone parts locally, including enclosures, chargers, fingerprint sensors, and batteries. Currently, most of these parts are imported even for the Pixel phones made in India.
At present, Dixon and Foxconn are producing around 43,000 to 45,000 Pixel smartphones every month in India, but only for local sale. Dixon handles about 65–70% of the production in India, including the newest models, while Foxconn focuses on older versions. Foxconn started manufacturing Pixels in Tamil Nadu in August 2023, and Dixon followed in December through a tie-up with Taiwan’s Compal Electronics.
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Alphabet is now expected to increase exports of Pixel phones from India to the US and may also ship to other countries. While Pixel has only a small share of India’s smartphone market due to its high pricing, its presence has improved with the recent push into offline stores. In the US, Pixel’s market share has grown, reaching nearly 14% after its latest launch, and ending last year at around 7%, according to Statcounter.