Are you worried about Google pulling back its manufacturing operations from China? If yes, then don't worry because Google has decided to shift production to India where labor charges are low and the quality of the labour force is high. This move would definitely benefit Google as well as its customers.
Google is planning to move some of the production of Pixel phones to India.
This move comes following disruptions in China from the COVID-19 pandemic and the country’s rising tensions with the United States. Parent company Alphabet Inc has reportedly invited bids from manufacturers to make between 500,000 and 1 million Pixel smartphones.
Google aims to produce 10-20 % of the estimated annual production for Pixel in the coming years. Chief Executive Officer Sundar Pichai reportedly considered a plan for manufacturing in India earlier this year, but the report said the final decision is yet to be made. However, if the approval follows through, India will need to import components from China according to a report by The Information.
In the past, Google has produced its Pixel smartphones in other Asian regions, but primarily in China. Google first attempted to move away from China in the year 2019, with the goal of producing its smartphones in Vietnam. The Pixel 4a and Pixel 5 were then reported to be produced in the country. But meanwhile, the Pixel 6 series moved back to China as a side effect of the world after the COVID-19 pandemic's most significant impacts.
China’s lockdown of Shanghai, its key tech hub, due to rising COVID-19 cases, also disrupted worldwide supply chains earlier this year. India imposes a sturdy 20% import tax on smartphones made outside of the country, and making smart devices locally could result in Google offering more competitive costing.
The Pixel 6a was Google’s first smartphone released in India almost three years ago, but its price was well above competing models in the region.Google will launch the Pixel 7 and its first smartwatch on October 6, as the company takes on Apple with a new line of rival products.
Google claims that it will continue to manufacture and sell the Pixel 3 globally, but the decision to shift production to India means that only one place will produce the smartphone. As far as the Pixel line is concerned, it is now clear that India will become the sole location for producing them. This move will also benefit the country as they will gain employment opportunities.