Google is taking a major step towards diversifying global manufacturing by setting up a manufacturing facility in India for its Pixel smartphones. The move has the potential to shake up the smartphone supply chain and meet the needs of major markets like the EU and the US.
Following its official announcement in late 2023, Google is now on the verge of starting Pixel production in India. Early reports suggest that trial production will begin soon, focusing on models like the Pixel 9. Google has partnered with established Indian manufacturers Dixon Technologies and Foxconn to handle production. This collaboration is expected to lead to full-scale production rollout by September, following the Pixel's official launch in August.
Interestingly, a large number of these Pixels made in India are destined for export, with the EU and the US identified as the main target markets. This strategy reflects the current market reality - Pixel sales in India, while growing, have not reached a level where domestic consumption can absorb all production output. By exporting the bulk of these phones, Google can meet higher demand in established markets and potentially reach a wider audience.
This move of manufacturing to India has several advantages for Google. It allows diversification of the production base, potentially reducing dependence on traditional centers and reducing associated risks. It also leverages India's growing electronics manufacturing capabilities, offering Google a cost-competitive manufacturing environment. For EU and US consumers, this could potentially result in more competitive pricing for Pixel phones.