Google to start Pixel phone production in India by Q2

Google has told suppliers to begin making its Pixel smartphones in India by the second quarter at the earliest, Nikkei Asia reports, marking the company's push to diversify supply chains away from China and tap into the fast-growing Indian smartphone market. The move comes as Apple has already scaled iPhone manufacturing in India through partners such as Foxconn and Tata, though a recent cyberattack on Tata Electronics that leaked over 200,000 files has raised concerns about data security, the South China Morning Post notes.

India produced about 6% of all iPhones in 2022, expected to exceed 25% by 2026, according to Counterpoint Research data cited by SCMP. The Hindu adds that Google already makes some Pixel models in India via Foxconn and Dixon, but higher-end Pro, XL, and Fold models are still imported, along with Pixel Watches and Buds. Experts quoted by The Hindu say India offers advantages such as lower tariff exposure versus Vietnam and established smartphone manufacturing and export infrastructure, but building a supplier ecosystem comparable to China will take time.

Google's plan to shift Pixel production to India follows the Pixel 11 series launch. The company faces challenges including limited retail presence and service outlets outside metro cities, but government schemes like the Production Linked Incentive scheme are helping develop manufacturing clusters.