Alphabet plans Pixel production shift to India from Vietnam amid US tariff pressure
Facing rising US tariffs on Vietnamese goods, Alphabet is accelerating plans to move Pixel smartphone manufacturing to India, making the country a key export hub for the premium devices.
- Apr 22, 2025,
- Updated Apr 22, 2025 8:40 AM IST
Alphabet, the parent company of Google, has initiated discussions with contract manufacturers Dixon Technologies and Foxconn to shift a significant portion of its global Pixel smartphone production from Vietnam to India, according to an ET report
The move comes as part of Alphabet’s broader strategy to diversify its supply chain and mitigate risks from geopolitical tensions. Notably, the United States recently proposed steep tariffs on imports from Vietnam, Pixel’s current primary production base, with a 46% levy compared to 26% on India. While President Donald Trump has paused these new tariffs for 90 days, the baseline 10% duty remains in effect.
Currently, Pixel smartphones made in India are largely intended for the domestic market, where import duties stand at 16.5%. The devices are assembled by Dixon in Noida and by Foxconn in Tamil Nadu, with the former producing newer models and the latter focusing on older ones.
Dixon accounts for nearly 70% of the Pixels made in India, while Foxconn was the first to begin production here in August 2023. Dixon joined the effort in December through a partnership with Taiwan’s Compal Electronics.
Alphabet had initially planned a gradual shift of global Pixel manufacturing to India over two to three years, but the potential US-Vietnam tariff regime has led the company to fast-track its strategy, sources said. The firm is now expected to ramp up exports from India to the US, and is exploring potential shipments to other countries as well.
This development aligns with New Delhi’s ambition to become a global electronics manufacturing hub. India and the US are also working on a broader trade pact that aims to more than double bilateral trade, from $190 billion to $500 billion, by 2030.
In the US, Google’s Pixel smartphones saw their market share climb to nearly 14% following recent launches, according to Statcounter. In India, the brand remains niche due to its premium pricing, but has seen some traction following its entry into offline retail channels.
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Alphabet, the parent company of Google, has initiated discussions with contract manufacturers Dixon Technologies and Foxconn to shift a significant portion of its global Pixel smartphone production from Vietnam to India, according to an ET report
The move comes as part of Alphabet’s broader strategy to diversify its supply chain and mitigate risks from geopolitical tensions. Notably, the United States recently proposed steep tariffs on imports from Vietnam, Pixel’s current primary production base, with a 46% levy compared to 26% on India. While President Donald Trump has paused these new tariffs for 90 days, the baseline 10% duty remains in effect.
Currently, Pixel smartphones made in India are largely intended for the domestic market, where import duties stand at 16.5%. The devices are assembled by Dixon in Noida and by Foxconn in Tamil Nadu, with the former producing newer models and the latter focusing on older ones.
Dixon accounts for nearly 70% of the Pixels made in India, while Foxconn was the first to begin production here in August 2023. Dixon joined the effort in December through a partnership with Taiwan’s Compal Electronics.
Alphabet had initially planned a gradual shift of global Pixel manufacturing to India over two to three years, but the potential US-Vietnam tariff regime has led the company to fast-track its strategy, sources said. The firm is now expected to ramp up exports from India to the US, and is exploring potential shipments to other countries as well.
This development aligns with New Delhi’s ambition to become a global electronics manufacturing hub. India and the US are also working on a broader trade pact that aims to more than double bilateral trade, from $190 billion to $500 billion, by 2030.
In the US, Google’s Pixel smartphones saw their market share climb to nearly 14% following recent launches, according to Statcounter. In India, the brand remains niche due to its premium pricing, but has seen some traction following its entry into offline retail channels.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine