Google is purportedly investigating opportunities to establish alliances with Indian suppliers for the purpose of manufacturing its Pixel smartphones. This strategic move is similar to Apple Inc.’s approach to diversifying its supply chain beyond China. Insiders, who preferred to remain anonymous, have revealed that the company has initiated initial discussions with several Indian companies, including Lava International Ltd., Dixon Technologies India Ltd., and Bharat FIH, the Indian unit of Foxconn Technology Group, as reported by Bloomberg.
All About the Google’s Partnership in India
Google aims to follow in the footsteps of other global technology companies by shifting its production to India. The company is currently engaged in talks with potential partners who have obtained production-linked financial incentives from Prime Minister Narendra Modi, which have effectively promoted domestic manufacturing. Apple has already taken advantage of this program, resulting in a significant increase in iPhone production in India, surpassing $7 billion in the fiscal year ending in March 2023.
Prime Minister Modi has been promoting India as an alternative manufacturing hub, particularly as more companies are concerned about relying too heavily on China due to the impact of Covid lockdowns and the trade war between the United States and China. During his visit to the United States this week, Modi’s delegation is expected to discuss various topics, including the removal of technology trade barriers between the two countries.
During the month of May, Ashwini Vaishnaw, India’s Technology Minister, held a meeting with Sundar Pichai, the CEO of Google, at the company’s headquarters in Mountain View, California. The purpose of the meeting was to discuss Prime Minister Modi’s emphasis on domestic manufacturing and India’s technology initiatives supported by the government.
Executives from the Mountain View giant, including Ana Corrales, the operating chief of its consumer hardware arm, and Maggie Wei, a senior director of global sustaining product operations, visited India this month for the partnership discussions. At the moment, there has been no response from representatives of Lava, Dixon, Google, and Foxconn regarding these reports.
Counterpoint Research reports that Google produced approximately 9 million Pixel smartphones in the previous year. The ongoing discussions in India suggest that Google has plans to increase its production beyond the boundaries of China and Vietnam. The Pixel smartphone is known for its advanced features, and Google utilizes its flagship hardware product to demonstrate the capabilities of its optimized Android operating system and apps.
India represents a substantial market for the growth of Google’s services; nonetheless, the company has observed the prevalence of more affordable Chinese smartphones in the area. Local assembly of Pixel smartphones could help increase sales, and if successful, Google might consider shifting the production of other hardware products, such as speakers, to India, as per the sources.
Nevertheless, it is uncertain whether Google’s negotiations will result in an agreement, and the company may choose not to manufacture the Pixel in India, according to the insiders.
