Google has instructed its suppliers to begin producing Pixel smartphones in India starting from the next quarter, signaling the tech giant’s intent to broaden its supply chain beyond China and tap into the thriving Indian smartphone market, as reported by Nikkei Asia.
At last year’s Google for India event, it was announced that production would initially focus on the high-end Pixel 8 Pro in southern India, with manufacturing slated to commence in the April-June quarter, followed by production of the Pixel 8 in the north around mid-year.
This move is part of Google’s plan to ship over 10 million Pixel phones this year, building on the approximately 10 million units it shipped in 2023 amidst a global economic slowdown. Google’s shift to India signifies a significant change in its supply chain strategy, previously reliant heavily on China for Pixel production.
This move aligns with a broader trend among tech companies to diversify their manufacturing beyond China. This strategy, dubbed ‘China+2’, aims to enhance supply chain resilience by having multiple non-China options for production.
In addition to market dynamics, Google’s move aligns with India’s push to become a tech manufacturing hub, offering incentives and considering tighter import restrictions to attract companies like Apple, Acer, and Asustek to establish local supply chains.
This reflects a broader trend of tech companies seeking to reduce reliance on China amidst geopolitical tensions. Google’s decision to produce Pixel phones locally in India likely considers these factors, along with the country’s sizable domestic market.
By collaborating with international and domestic manufacturers in India, Google aims to meet the increasing demand for Pixel smartphones in the country.