Google will begin Pixel smartphone production in India as soon as the next quarter, according to a report by Nikkei Asia. This move will help boost the company's made-in-India plans. In October last year, at the 'Google for India' even the company announced that they would start the production of the Pixel 8 series in India. They also promised that the first made-in-India Pixel phones will be available from 2024. The new development falls in line with the announcements made last year.
The report suggests that Google is set to start setting up a factory for its top-tier Pixel 8 Pro smartphone in South India soon, with plans to begin making the phones between April and June, insiders say. Following that, the company will also start manufacturing the Pixel 8 model in North India later in the year.
The move aims to reduce reliance on China and tap into the vast and growing Indian smartphone market. In 2023, Google shipped around 10 million Pixel units and aims to match or exceed that number this year. The production will kick off with the high-end Pixel 8 Pro in southern India, followed by the Pixel 8 in the northern part of the country.
This strategic shift comes as Google seeks to enhance supply chain resilience amid the ongoing tech tensions between the U.S. and China. The company's decision aligns with a broader industry trend of seeking alternatives to Chinese manufacturing, dubbed the 'China+2' strategy, emphasising the need for multiple non-China production options. Google's initiative also reflects a response to the Indian government's aggressive push to become a tech manufacturing hub, offering incentives and considering stricter import restrictions to attract tech giants.
The report cited sources saying, "Google is not the only tech company that started to look for a 'China+2' strategy. That means diversifying away from China into another place is not enough, but suppliers should have multiple non-China options for better supply chain resilience."
Despite a global slowdown in the smartphone market, with a 4.7 per cent decline in 2023, the Indian market showed growth, highlighting its potential as a lucrative market for companies like Google. The move to manufacture Pixel phones in India is part of Google's broader strategy to maintain the competitiveness of its smartphone business and support its ecosystem, including the search engine and mobile operating system, especially as competitors like Huawei and Samsung explore alternatives.