Google is looking to move some of its Pixel production to India
While a majority of production still occurs in China, recently, some larger technology companies have either explored moving production of products to other countries outside of China or splitting the production between several countries. There are a number of reasons for this shift, and whether a company is motivated by political or financial reasons, the shift is happening. Now, according to a new report, it looks like Google could be moving some of its Pixel production to India.
According to The Information, Google wants to move some of its smartphone production to India. The source states that the company will want to produce around 500,000 to 1 million Pixel devices annually. This amount would make up roughly 10 to 20 percent of Google’s total Pixel device shipments for the year. The company has spoken with regional manufacturers to test the waters but has yet to solidify a deal. This wouldn’t be Google’s first time moving production of its products outside of China. The company currently produces its Pixel devices using facilities in both China and Vietnam. Google could eventually add a third manufacturing partner in India sometime in the future.
The source also states that Google wants to streamline the production of its Pixel devices by reducing potential problems. Due to lockdowns, the firm has recently experienced delays in its facilities in China. Furthermore, Google could create other advantages for its business by moving production to India. By having a production facility inside the country, it would be able to be more competitive in selling its products in the region. Currently, India has a 20 percent import tax on smartphones made out of the country. By making devices locally, the firm could offer more better pricing on its mid-range devices like the Pixel 6a and future handsets.
This is something we have seen a lot of over the past couple of years. Big manufacturers either want to move their production somewhere outside of China or at least diversify by setting up production in another country. Recently we reported that Apple Watch production could move to Vietnam. Furthermore, it was also looking to shift MacBook production from China to Vietnam. While diversifying production is certainly a good thing, it isn’t always as easy as just setting up a new factory with many variables coming into play.