Google seeks suppliers to maneuver Pixel manufacturing to India

Google, a subsidiary of Alphabet Inc., is reportedly exploring alternatives to determine partnerships with Indian suppliers for the meeting of its Pixel smartphones. This strategic transfer mirrors Apple Inc.’s method of diversifying its provide chain past China.

Google has commenced preliminary discussions with a number of corporations in India, together with Lava Worldwide Ltd., Dixon Applied sciences India Ltd., and Bharat FIH, the Indian unit of Foxconn Expertise Group, Bloomberg reported whereas citing insiders, who most popular to stay nameless because of the confidentiality of the matter.

Google is ready to hitch the ranks of worldwide know-how corporations shifting their manufacturing to India. The corporate is in discussions with potential companions who’ve secured Prime Minister Narendra Modi’s production-linked monetary incentives, which have efficiently promoted home manufacturing. 

Apple has already taken benefit of this program to develop its provider community in India, leading to a big improve in iPhone manufacturing, surpassing $7 billion within the fiscal yr ending in March 2023.

Modi has been pitching India in its place manufacturing hub, as extra corporations have gotten cautious of the dangers of relying on China after its harsh Covid lockdowns and a commerce battle between Washington and Beijing. Modi is scheduled to go to the US this week the place his delegation is predicted to carry talks on subjects together with a elimination of tech commerce boundaries between the 2 international locations.

In Might, India’s Expertise Minister Ashwini Vaishnaw met with Google Chief Govt Officer Sundar Pichai on the firm’s headquarters in Mountain View, California, for a dialog that revolved round Modi’s native manufacturing drive and India’s state-backed know-how push.

Key Google executives who visited India this month for the partnership talks included Ana Corrales, working chief of its shopper {hardware} arm, and Maggie Wei, a senior director of worldwide sustaining product operations, the individuals mentioned.

Representatives for Lava, Dixon, Google and Foxconn didn’t reply to requests for remark.

Google constructed about 9 million Pixel smartphones final yr, in response to Counterpoint Analysis, and the discussions in India underscore its plans to maneuver manufacturing past China and Vietnam. The Pixel is among the many most refined smartphones, and Google makes use of its flagship {hardware} product to showcase what its Android working system and apps are able to when optimized.

India is a key development marketplace for Google’s companies however the firm has largely watched from the sidelines as cheaper Chinese language telephones have dominated the area. Native meeting may assist drive up Pixel gross sales, and if the telephone effort is profitable, Google may additionally transfer manufacturing of different {hardware} similar to audio system to India, the individuals mentioned.

Nonetheless, there is no such thing as a certainty Google’s talks will end in a deal and the corporate may decide to not construct the Pixel in India, the individuals mentioned.

(With Bloomberg inputs)

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Up to date: 20 Jun 2023, 02:06 PM IST