Google mulls moving Pixel production to beat tariff burden

The current tariff situation in the US is forcing companies to find solutions that will minimize the impact on products shipped to the country. This includes the likes of Google and other tech industry giants. In order to avoid higher tariffs, Google is reportedly considering moving the production of its Pixel phone.

Vietnam has long been the home of Pixel production, but Google may now be thinking of pivoting to another country. According to a report from The Economic Times, Google is considering moving the manufacturing process to India from Vietnam. It’s reported that the company has initiated talks with its Indian manufacturing partners, Dixon Technologies and Foxconn, to move parts of the supply chain to India. While Google can’t wiggle completely out of the way of these tariffs, this move would help it cut costs.

Vietnam was facing a 46% tariff on goods imposed by the Trump administration. However, a 90-day pause was implemented shortly after. Meanwhile, India is looking at a 26% tariff rate, which would make the country a more favorable location if the tariffs aren’t recinded or if the pause isn’t, at least, extended.

Another cost-cutting measure the firm is said to be eyeing is localizing the sourcing of key Pixel components to India. The report states:

The company has also shared plans with the contract manufacturers on localising some components in India, such as enclosures, chargers, fingerprint sensors and batteries, the executives said. Currently, most components for made-in-India Pixel phones are imported.

Reducing reliance on imports could help Google significantly shrink the cost of production. This report claims that Foxconn and Dixon currently make 43,000 to 45,000 Pixel phones per month in India. These units are primarily exclusive to the Indian market.