The tech giant-Google is willing to produce its Pixel mobiles in India. The company is in talks with various suppliers who can potentially assemble the mobiles. Google seems to have borrowed a strategy from Apple, which in recent years had moved some iPhone production out of China.
Following a meeting between Google CEO Sundar Pichai and Indian Minister for Information Technology Ashwini Vaishnaw last month, Google has just started talks with domestic suppliers. According to reports, the two spoke about India’s push for manufacturing and the possibility of building Google devices there to increase the company’s manufacturing foothold there.
According to the reports, Google is in early stages of talks with Lava International Ltd., Dixon Technologies India Ltd., and Bharat FIH (the Indian division of Foxconn Technology Group)., which cites unnamed sources.
The production-linked scheme of the government, which has assisted in increasing manufacturing in India and encouraging international manufacturers to establish production facilities there, has provided financial incentives to the companies being considered as partners.
India has been a sizable market for its services, but when it comes to hardware, China has been the country’s leading player due to its more affordable products.
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Even the Pixel ‘a series has been on the more expensive end of the price spectrum, so moving production to India may be perceived as an attempt to reduce costs, which might then help the business sell more Pixel phones in India.
According to insiders, Maggie Wei, a senior director of global sustaining product operations, and Ana Corrales, the operating Chief of Google’s consumer hardware division, were among the important officials who recently travelled to India for partnership negotiations.
According to Counterpoint Research, Google produced around 9 million Pixel mobiles last year using factories in China and Vietnam. If the conversation is successful, a sizable chunk of production might be shifted to India.
If the initiative is successful, Google aims to produce more hardware in India than just phones. The conversation is still in its very early phases, so it’s possible that the business will decide not to move through with this strategy.
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