Alphabet plans Pixel production shift to India from Vietnam amid US tariff pressure

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Alphabet Inc., the parent company of Google, has reportedly opened discussions with its contract manufacturers in India—Dixon Technologies and Foxconn. The Economic Times reported that Google is considering moving some of its Pixel smartphone manufacturing from Vietnam to India. According to the source, the action was taken in response to rising tariff threats associated with Vietnam, which is now Google's primary production location for the Pixel portfolio.

The report claims that in addition to increasing assembly in India for sale to the US, Google is considering progressively localizing essential parts including enclosures, fingerprint sensors, chargers, and batteries—the majority of which are now imported.

Google is considering this possible change, like many other IT businesses, mainly because of the tariff threats from the US, which has suggested a 46% tax on imports from Vietnam as opposed to 26% from India.

In light of the looming prospect of Trump tariffs, Nothing CEO Carl Pei recently alluded to expanding the company's exports from India.

The 10% baseline fee is still in place even if the reciprocal tariffs were put on hold for 90 days starting on April 9. China, which still produces some Pixels, is not eligible for the interim respite and is subject to a high 145% tax.

According to the source, Google presently manufactures between 43,000 and 45,000 Pixel devices every month in India, all for the local market. Dixon works with Taiwan's Compal Electronics at its Noida factory to handle the majority of production, including the more recent models. Foxconn, on the other hand, was the first to begin manufacturing in India last August and concentrates on older Pixel models from its Tamil Nadu facility.

The report claims that although previous plans called for a two to three year ramp-up in India, the corporation has been compelled to expedite production shifts due to shifting trade dynamics, particularly for devices headed to the US.

Currently, Pixel smartphones made in India are largely intended for the domestic market, where import duties stand at 16.5%. The devices are assembled by Dixon in Noida and by Foxconn in Tamil Nadu, with the former producing newer models and the latter focusing on older ones.

This development is in line with New Delhi's goal of becoming a major center for electronics production worldwide. A larger trade agreement between the US and India is also being negotiated, with the goal of more than doubling bilateral commerce between the two countries by 2030, from $190 billion to $500 billion.

Following recent releases, Google's Pixel smartphones experienced an increase in market share to around 14% in the US, according to Statcounter. The brand's expensive cost keeps it niche in India, although it has gained some popularity after entering offline retail channels.