Google reportedly contemplating making Pixel telephones in India

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Following Apple’s accelerated smartphone relocation to India, The Data quoted sources saying that Google is contemplating manufacturing Pixel smartphones in India, highlighting India’s and Vietnam’s ever-increasing position in international cell phone manufacturing.

TechCrunch and Reuters quoted The Data saying that as a consequence of China’s lockdown measures and the US-China pressure, Google has solicited bids from producers in India to make between 500,000 to 1 million Pixel smartphones, accounting for 10-20% of estimated annual manufacturing of Pixel smartphones. Based on the experiences, Alphabet CEO Sundar Pichai has but to make a remaining choice.

In 2019, Nikkei Asia reported that Google shifted some Pixel manufacturing to Vietnam. The New York Occasions additionally reported that Google meant to fabricate the upcoming Pixel 7 sequence in Vietnam a number of days in the past. Nevertheless, Google is believed to be exploring growing a foldable cellphone in 2023, which requires shut connections with China-based suppliers, and Google may not be capable of transfer out of China utterly.

Based on TechCrunch, Google might sign extra dedication to its smartphone enterprise if it strikes forward with the relocation plan. Since Pixel just isn’t made in India, greater than 20% of fundamental customized duties and social welfare surcharges can be levied on imported telephones.

IDC information reveals that within the first half of 2022, Google shipped 5,927 cell phones in India, far under the two.11 million models in different markets throughout the identical interval.

Bloomberg Intelligence analysts identified that given Google’s lower than 1% international smartphone market share, shifting 10-20% of Pixel manufacturing capability to India is unlikely to have a big effect on Pixel’s market share or Alphabet’s gross revenue within the {hardware} phase, including that Google might additional diversify its provide chain.

India is the second-largest smartphone market after China and nonetheless enjoys a comparatively excessive development than China. Optimistic about India’s development potential, Alphabet introduced an funding of US$10 billion in India in 2020. Google has partnered with Reliance Industries to develop an entry-level 4G smartphone JioPhone Subsequent and can co-develop a 5G smartphone as introduced by Reliance. As Pixel is priced a lot increased than JioPhone Subsequent, Google’s made-in-India Pixel could have little impression on the partnership between Reliance and Google.

Pixel smartphone international gross sales (models)

Yr

India

Exterior India

India share (%)

2019

68,051

7,081,687

0.95

2020

47,317

3,647,415

1.28

2021

161,533

4,506,652

3.46

1H22

5,927

2,111,873

0.28

Supply: IDC, compiled by DIGITIMES Asia, September, 2022

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