Google is looking to take its Pixel production out of China, which is a similar strategy to what Apple follows as the latter is also setting up plants outside of the region to offset any losses happening in the country due to various reasons.

Google is said to be in active talks, which involves talking with domestic suppliers in India to set up production plants

Apple chose to aggressively move production out of China when Foxconn’s main assembly plant in Zhengzhou had to be temporarily closed due to COVID-19 restrictions. Apple actually put out a press releasestating that iPhone 14 Pro and iPhone 14 Pro Max shipments would be affected during the holiday period, and according to a previous estimate, the company reported a revenue lossfor the first time in four years in that specific period as a result of this setback.

Google reportedly wants to avoid being placed in a similar position, and given that it is not even in the same conversation as Apple when it comes to smartphone market share, diversifying its supply chain will represent a positive start for the company. According to Bloomberg, the advertising giant is in talks with local suppliers in India, such as Lava International, Dixon Technologies, and Foxconn Technology Group, to set up Pixel production in the region.

There are no statistics available at this time, which would have discussed the number of Pixel smartphones that will be produced in India for 2023, but it will take several years for Google to reduce its dependency on China, both from a shipment and labor cost perspective. According to Counterpoint Research, the company produced around 9 million Pixel smartphones in 2022, which could slightly climb this year.

Google branching out to India can also mean that the Pixel range will be easily accessible to the general public at competitive prices, with additional diversification possibly leading to the firm targeting other markets. Unfortunately, there are few details available to us right now, so we will update our readers in due time.

News Source: Bloomberg