Google may start smartphone production in India

Google is in talks with contract producers in order to maneuver some production of Pixel smartphones to India. The seemingly candidates bidding to assemble Pixel telephones in India embrace Foxconn (BharatFIH), Lava and Dixon Technologies.

Google has been making an attempt to maneuver its production from China because the finish of the Covid-19 pandemic. It solidified plans to maneuver production away from China to Vietnam final 12 months. However, similar to Apple, Google hopes to capitalise on India’s beneficial polices for smartphone production.

At least three sources have confirmed with businessline that Google is in talks with varied suppliers. In reality, Google had spoken to suppliers in India in 2021 and 2022 as nicely, when Foxconn was prone to win the bid. However, these plans didn’t materialise at the moment.

The Indian authorities is intent on attracting know-how firms transferring away from China because of geopolitical uncertainties. During Sunder Pichai’s go to final December, the potential of “made in India,” Google Pixel telephones was a key focus for the federal government.

If talks with suppliers in India materialise, Google would be the third main world gadget participant to make use of India as an export-oriented manufacturing hub. Apple and Samsung are already planning to shift a major chunk of their production to India. Apple plans to shift 18 per cent of its production to India by 2025.

By regionally producing telephones in the nation, Google may additionally enhance gross sales for its smartphones in India. Google’s high-end smartphone has not carried out nicely in India, and it has skipped launching the flagship variations of its cellphone in India for the previous three years, as a substitute specializing in serving the market with the mid-range a-series line-up. By producing telephones regionally, Google would keep away from the heavy import obligation levied by India on imported smartphones.

Google shipped round 9 million Pixel smartphones final 12 months, based on Counterpoint Research. A Bloomberg report stated the discussions in India underscore Google’s plans to maneuver production past China and Vietnam. Local meeting may assist Pixel gross sales as India is a key development marketplace for Google’s companies, and if the cellphone effort is profitable, Google may additionally transfer production of different {hardware} similar to audio system to India, Bloomberg stated

India almost doubled smartphone exports in FY23 to over $11 billion, with the vast majority of export worth coming from world smartphone makers. Apple exported nearly $5 billion from India in FY23, with Samsung following shut behind. Global smartphone makers have been among the largest beneficiaries of the cell PLI, and have additionally contributed probably the most to total production numbers for the nation.

However, whereas the numbers look rosy for cell production, Indian economist, Raghuram Rajan just lately identified that in a bid to push cell production, we’d have change into extra depending on the import of parts. The mixed internet imports rose from $12.7 billion in FY17 to $21.3 billion in FY23.