Alphabet moves Pixel production to India to dodge tariffs
That's one more tech giant pivoting to India for solitude.
You've probably heard about U.S. President Donald Trump’s “Liberation Day” tariffs, a sweeping set of import levies aimed at rebalancing what he calls an unfair trade dynamic.
In other words, Trump is saying America has been giving more than it’s getting, and now it's time to “level the playing field”. The result? A global tariff war has hit manufacturing powerhouses like China, Vietnam, and others, leaving major tech companies scrambling to protect their bottom line.
Big names are already making bold moves. Apple reportedly chartered cargo planes to fly around 1.5 million iPhones, nearly 600 tonnes, from India to the U.S. earlier this month, dodging incoming tariff charges. Now, the parent company of Google, Alphabet, is making a bold move too.
Emmanuel Oyedeji
Reports suggest Alphabet is planning to shift a significant portion of its Pixel smartphone production from Vietnam to India. The idea is to dodge the towering 46% U.S. tariff on Vietnamese goods by moving operations to India, where tariffs are relatively lighter at 26%.
Although there is a temporary 90-day pause on these tariffshas, with only a 10% baseline tariff remaining in place, Alphabet is taking a preemptive approach and has already kicked off talks with local manufacturers, Foxconn and Dixon Technologies, who currently build Pixel phones for the Indian market.
The big tech company is also eyeing local sourcing of key components like fingerprint sensors, chargers, and batteries, cutting reliance on imports and streamlining production costs in the long term. If all goes to plan, India could emerge as a major player in global smartphone manufacturing.
Up until now, Vietnam has been a Pixel powerhouse. Almost half of all premium Pixel models were assembled there last year. In contrast, India’s role has been limited, producing just 43,000 to 45,000 units monthly, mainly for domestic use. But with Alphabet’s shift and plans to ramp up exports, that balance is set to change.
The timing is strategic. The U.S. recently announced a 90-day pause on some tariffs, and trade talks with India are ramping up. Both nations are eyeing a trade deal by September, with hopes to boost two-way trade to $500 billion by 2030. For U.S. tech firms, this could mean long-term advantages in shifting operations to India.
India has long been a favoured destination for tech companies looking to diversify their manufacturing from China, which faces steep US tariffs, some as high as 145%. Apple has been steadily increasing its output there, with more iPhones now made in India than ever before. And now, with Google making a major shift too, it’ll be interesting to see how India capitalises on this new wave of international investment and attention.
Kelechi Edeh
