Alphabet Inc’s (GOOGL.O) Google has begun early conversations with domestic suppliers to move some production of its Pixel smartphone to India, Bloomberg News reported on Tuesday, citing people familiar with the matter. Global tech giants are eyeing India as a manufacturing hub, shifting away from China after strict COVID-related restrictions hindered production. Apple (AAPL.O) supplier Foxconn was given a project earlier this month to start assembling iPhones in India. Google has reportedly spoken to Lava International Ltd, Dixon Technologies India, and Foxconn Technology Group’s Indian unit Bharat FIH about moving Pixel assembly operations to India, according to Bloomberg.
The move would save Google money on shipping costs and allow it to better compete in the highly competitive Indian market, where smartphones are sold at steep discounts. Local production could also help Google bypass the hefty 20% import tax imposed on foreign devices in the country.
The move follows a shift by other major US phone makers to move away from China as supply chains were disrupted by Beijing’s Covid-19 lockdowns and rising geopolitical tensions with the United States. In September, Apple began making four models up to the iPhone 13 in India through contract manufacturers Foxconn and Wistron. It is reportedly considering introducing the production of the iPhone 14, unveiled on September 7, in the country as well. Samsung, the world’s largest smartphone maker, already produces its Galaxy Note 9 smartphones in Vietnam.
