Alphabet Eyes India for Pixel Smartphone Exports Amid Tariff Pressures Foxconn, which began Pixel assembly at its Tamil Nadu facility in August 2024, has been focusing on older models. Dixon, in partnership with Taiwan's Compal Electronics, started production at its Noida plant in December and now manufactures up to 70 per cent of Pixel phones made in India

Alphabet Inc., the parent company of Google, is actively exploring a shift in its global manufacturing strategy, with India emerging as a key player in the future of Pixel smartphone production. According to a report by The Economic Times, Alphabet has initiated talks with its Indian manufacturing partners, Dixon Technologies and Foxconn, to move a portion of Pixel phone production for US markets from Vietnam to India.

The discussions, which began around two weeks ago, mark a significant pivot in Alphabet's manufacturing approach. Vietnam has served as the core production hub for Pixel smartphones. However, the potential imposition of steep US tariffs on Vietnamese goods, up to 46 per cent, has prompted Alphabet to reconsider its supply chain. India, by contrast, faces a relatively lower tariff rate of 26 per cent, positioning it as a more favorable export base.

Although Washington has announced a 90-day pause on reciprocal tariffs starting April 9, a 10 per cent base tariff remains in effect. China, another major electronics producer, remains excluded from this tariff relief and continues to be hit with a staggering 145 per cent duty. These developments have added urgency to Alphabet's diversification strategy.

In tandem with shifting production, Alphabet is also working to localize key components in India such as fingerprint sensors, batteries, chargers, and enclosures to reduce reliance on imports. This move could significantly cut costs and sharpen the company's competitive edge in global markets, the report said.

Dixon and Foxconn currently produce about 43,000 to 45,000 Pixel smartphones per month in India, exclusively for domestic sale. Foxconn, which began Pixel assembly at its Tamil Nadu facility in August 2024, has been focusing on older models. Dixon, in partnership with Taiwan's Compal Electronics, started production at its Noida plant in December and now manufactures up to 70 per cent of Pixel phones made in India, including the latest generation.

While Alphabet originally envisioned India as a global hub for Pixel production over a two to three-year horizon, ongoing geopolitical and trade shifts have fast-tracked those plans. An executive cited in The Economic Times report confirmed that Alphabet aims to steadily scale up exports to the US and is also assessing opportunities to serve other international markets from India.