Trump Tariffs: Google plans to make Pixel smartphones in India for the US market

Google parent Alphabet Inc is in discussions with its Indian contract manufacturers, Dixon Technologies and Foxconn, to relocate part of Google Pixel smartphone production from Vietnam to India, targeting devices for the U.S. market, according to a report in the Economic Times. Talks reportedly began two weeks ago, driven by Google's strategy to mitigate risks from potential US tariffs on Vietnam, where Pixel phones are primarily produced.
The US, under President Donald Trump, announced a 46% tariff on Vietnam compared to 26% on India, though Trump deferred reciprocal tariffs for 90 days on April 9, maintaining a 10% baseline tariff. China faces a 145% tariff without deferment. Alphabet aims to localize components like enclosures, chargers, fingerprint sensors, and batteries in India, where most Pixel components are currently imported, the Economic Times reported, citing two industry executives.
India and the U.S. are negotiating to boost bilateral trade to $500 billion by 2030 from $190 billion, making India an attractive manufacturing hub for companies like Google and Apple. Dixon and Foxconn currently produce 43,000-45,000 Pixel smartphones monthly in India for the local market, with Dixon manufacturing 65-70% of these, including the latest models, at its Noida plant, while Foxconn focuses on older models at its Tamil Nadu facility. Foxconn began Pixel production in India in August 2024, followed by Dixon in December 2024, in partnership with Taiwan’s Compal Electronics.
The tariff threat has accelerated Google's plan to make India a global Pixel production base, originally set for two to three years, the executives told the Economic Times. Google began Pixel production in Vietnam in 2023 to reduce reliance on China, with nearly half of its premium models made there last year. Google now plans to scale up exports from India to the U.S. and explore other markets. In India, Pixel holds a low single-digit market share due to premium pricing, though offline sales have boosted its presence. In the US, Pixel’s market share hit 14% after recent model launches, ending 2024 at 7%, per Statcounter data.