Google parent company Alphabet is planning to move production of its Pixel smartphone from Vietnam to India amid continued turbulence due to US tariffs. US President Donald Tump had announced sweeping reciprocal tariffs against nearly all imports from over 180 countries earlier this month. Vietnam was one of the countries hardest hit by the now paused (for 90 days) levies, with Trump imposing a 46% charge on imports. India faces a relatively lower tariff of 26% with the additional promise of a bilateral trade agreement in the vicinity.
According to an Economic Times report, Apple held the first round of talks with its local contract manufacturers (Dixon Technologies and Foxconn) earlier this month. The move will see part of its global production — especially for Google Pixel smartphones headed for the US — shifted from Vietnam to India. The report also added that Alphabet has outlined plans to localise several device components within India — including enclosures, fingerprint sensors, chargers and batteries. These elements are mostly imported for Pixel phones being assembled in India at present.
India and the US are currently working to formulate a bilateral trade agreement by September this year — aimed at doubling trade ties to $500 billion by 2030. Prime Minister Narendra Modi also met with US Vice President JD Vance this week to discuss a potential trade deal and the looming threat of US tariffs. An official statement from the PM’s office also “welcomed the significant progress” in negotiations on Monday evening.
“…formally announce that America and India have officially finalised the terms of reference for the trade negotiation. I think this is a vital step. I believe this is a vital step toward realising President Trump’s and Prime Minister Modi’s vision because it sets a roadmap toward a final deal between our nations. I believe there is much that America and India can accomplish together,” Vance said during an address in Rajasthan on Tuesday.
According to reports, Foxconn and Dixon currently produce around 43,000 to 45,000 units of the Pixel smartphone in India every month for the domestic market. Foxconn began production last year in August at a facility in Tamil Nadu and procuses mainly on the older models. Meanwhile Dixon operates from a Noida plant in partnership with Taiwan-based Compal Electronics and handles newer models.
