Alphabet to step up Pixel output from India: report

Alphabet is in talks with Indian contract manufacturers Dixon Technologies and Foxconn to shift a part of the global production of Google Pixel smartphones to India from Vietnam, particularly devices exported to the US, The Economic Times reported, citing two people aware of the matter.

Initial talks took place a fortnight ago, the report said.

In the beginning of the month, US President Donald Trump had announced 46% tariffs on Vietnam against 26% on India, before pausing the reciprocal tariffs by three months on 9 April, with the baseline 10% tariffs already in place.

Tech firms are looking to derisk sourcing. Higher US tariffs on Vietnam, the Pixel’s primary production base, can tilt the scales in lower-tariffed India’s favor.

The company is also mapping a strategy of localizing component manufacturing like enclosures, chargers, fingerprint sensors and batteries in India. Currently these products for made-in India Pixel phones are imported.

Meanwhile, Apple is also planning to expand its iPhone operation in India, where US tariffs are lower than even China.

Google started Pixel production in Vietnam through Foxconn and Compal in 2023 to reduce risk and dependence on China. Media reports suggest that almost half the premium models were manufactured in Vietnam last year.

So far, Vietnam has gained a lot of ground as part of the “China Plus One” strategy, where companies diversify their manufacturing outside of China.

Though both India and Vietnam offer lower labour costs and favorable business environments, Vietnam has achieved more success in attracting investment and diversifying supply chains compared to India.