As confirmed by latest news, Alphabet, the parent company of Google, is in negotiations with Dixon Technologies and Foxconn to move a significant portion of its global Pixel smartphone production from Vietnam to India.
This action is a component of Alphabet’s larger supply chain diversification plan to lower its exposure to geopolitical risk.
Alphabet To Move Production of Pixel Smartphone To India
The planned US tariffs, which include a 46% tax on Vietnamese imports compared to a 26% tax on Indian imports, are a major motivator. The standard 10% import duty remains in effect even though President Donald Trump has put a 90-day hold on the new tariffs.
While global equity markets have plunged following US President Donald Trump’s April 2 tariff announcement, India has bucked the trend. The Sensex and Nifty have risen 2.5% and 2.2%, respectively, in local currency terms—over 2% in USD terms—making India the only major market to post gains during this volatile period, according to Bloomberg data.
With import taxes of 16.5%, Pixel phones manufactured in India are currently primarily used domestically.
70% Pixel Smartphones Produced in India
The phones are produced in India by Foxconn in Tamil Nadu, which specializes in older models, and Dixon in Noida, which handles newer models.
Approximately 70% of Pixel smartphones made in India are produced by Dixon.
Dixon joined in December 2023 through a collaboration with Taiwan’s Compal Electronics, while Foxconn began production in August.
Alphabet initially intended to gradually move production to India over a period of two to three years, but the company has accelerated the process due to the threat of US tariffs.
The company is currently investigating shipments to other nations and intends to expand Pixel exports from India to the US.
India’s ambition to become a global center for electronics manufacturing is supported by this shift.
According to Statcounter, Google’s Pixel market share in the US has increased to almost 14% following recent launches.
Due to its high price, Pixel is still a niche brand in India, though it has experienced some growth since joining physical retail channels.
