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As per a report from The Economic Times, Alphabet Inc. is negotiating with its Indian subcontractors, Dixon Technologies and Foxconn, regarding relocating a section of the Pixel smartphone's assembly work from Vietnam to India. The report alleges that the shift is as a result of an increase in tariff-related risks for Vietnam, the heaidng hub.
Restructuring the Sprint Logic
Besides marketing assembly activities, Google also plans to expand India’s regional assembly in the US and gradually shift the manufacturing of critical components—such as android cases, fingerprint scanners, smart phone chargers, and batteries—to India, where they are mostly fabricated.
Strategically Driven from the Top
This change of approach appears to be directed at the US’s newly suggeted tariffs of 46 percent on goods imported from Vietnam and 26 percent on goods sourced from India. The recent spike in general aleviation tariffs seemed to have impacted the willingness of other tech firms like Nothing to shift the base from which they export to India.
The round of tariffs starting on April 9, with a nominal counter-tariff locked at a steady 10%, along with a non-reciprocal suspension lasting 90 days leaves room for semblances of flexibility. Meanwhile, the outbound charge of 145% with no counterpart from China remains stagnant.
Overview of Manufacturing Activities in India
At the moment, Google sells about 43,000 to 45,000 Pixel smartphones in India every month for domestic consumption. The majority of this manufacturing is done by Dixon Technologies at Compal Electronics’ associated plant in Noida, Foxconn also does some assembly of older Pixel models in Tamil Nadu.
Google's expansion plans have historically been multi-phased over two to three years, however, shifting geopolitical climates seem to be forcing a more aggressive approach for the U.S. market geared devices.
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