Sources say Google plans to start producing Pixel phones in India in the second quarter to reduce dependence on China's supply chain

IT House News on February 22, Nikkei Asia reported that Google is looking to move some of its Pixel phone production lines out of China and plans to start producing Pixel 8 Pro models in its southern Indian factory as early as the second quarter of this year. The move aims to reduce dependence on China's supply chain while exploring India, the world's second-largest smartphone market.

According to reports, people familiar with the matter revealed that Google set ambitious sales targets for Pixel phones last year, planning to ship 10 million units in 2024.

According to IDC data, the Indian smartphone market grew by 1% last year to 146 million units, with the growth rate in the second half of the year reaching as high as 11%.

Google will first prepare the production line for the Pixel 8 Pro at its plant in southern India and plans to start production of the high-end phone in the second quarter of this year, followed by the assembly of Pixel 8 models at its plant in northern India in mid-year.

Previously, Google had set up a Pixel mobile phone production line in Vietnam.

IT House has noticed that Apple has previously produced some iPhone models in India and attracted related parts and assembly suppliers to set up factories in India. Producing mobile phones locally in India can avoid import tariffs, thereby lowering product prices and helping to tap into consumer groups in this developing market.

Analysts believe that Google’s choice to set up a factory in India also took into account factors such as the investment incentives, import tariff policies and huge domestic market provided by the country.

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