Alphabet Inc is in conversations with Dixon Technologies and Foxconn (two of its main suppliers) to move part of its global smartphones production to India from Vietnam. According to, The Economic Times. The movement responds to the tariff crisis in the United States, after the imposition of global tariffs and the uncertainty of what will end up happening in countries such as Vietnam, which in the first instance were under a tariff of more than 40%.
THE HOUSE OF THE PIXEL. The Google Pixel They are technically American mobile but their manufacture, Like the rest of the big playersIt is out of the United States. Pixel are manufactured mainly in China and Vietnam, two of the countries most punished by Trump’s tariffs.
Fleeing from China. Time before the package of measures to fight commercially with China, Google had been trying to get the production of its devices out of China. Almost three years ago we had news about a specific movement: Google was moving the production of the Pixel 7 to Vietnamkeeping in China that of fold models, the most expensive to produce.
A movement similar to Samsung’scompany that produces mainly in Vietnam and that has barely a presence in China. If a 10%global tariff is maintained, the supply chain would not suffer too much. If it turned to more than 40% initial, the photograph would change completely.
Looking at India. It is not the first time that Google manufactures phones in India through its partners. Initially, the company moved part of the production to this emerging country to supply the local market, and now it would be in conversations with Dixon Technologies and Foxconn not only to produce more phones, but for the production of components.
Cases, loaders, fingerprint sensors and batteries, are some of the components that Google wants to stop importing to be able to manufacture them locally in India. In the first tariff ads, India would correspond to a 26%tariff.
Times and costs. According to Economic Times, Dixon and Foxconn have been manufacturing between 43,000 and 45,000 Pixel smartphones per month in India exclusively for local market, seeking to make their smartphones could be competitive in price against Apple and Samsung. Dixon is responsible for producing between 65 and 70% of the new Pixel, and Foxconn of previous models.
This movement to increase production in India would have a horizon of two to three years, a much shorter term than Google had planned in a pre-aroncel scenario. Currently, Google has almost 14% market share in the United States, so maintaining a competitive price to continue having muscle in its local market is key.
They are not alone. The Google movement responds to a practice that the smartphone industry has been executing for years. Apple, who has tried in recent years move part of its production to India, It has not arrived on time, and its supply chain continues to depend mainly on China.
Samsung dodged the bullet fleeing to Vietnam, and even the great chips manufacturers have been considering to escape from China to avoid geopolitical instabilities.
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