Google Eyes Expanding Pixel Smartphone Assembly to India: Strategy Follows Apple's Footsteps

Alphabet Inc GOOG GOOGL Google is pursuing suppliers in India to assemble its Pixel smartphones, borrowing a leaf from Apple Inc's AAPL strategy.

The company has initiated early conversations with homegrown Lava International Ltd, Dixon Technologies India Ltd, and  Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group's Indian unit Bharat FIH, Bloomberg cites familiar sources.

Google's potential partners have won India's production-linked financial incentives, which have boosted local manufacturing. 

Apple leveraged the program to broaden its supplier base in India and tripled iPhone output to over $7 billion in the fiscal year through March 2023.

Indian Prime Minister Narendra Modi has pitched the country as an alternative manufacturing hub as companies eye a safer haven from China's harsh Covid lockdowns and a trade war with the U.S.

Local assembly could help drive up Pixel sales, and if the phone effort kicks in, Google could also migrate production of other hardware like speakers to India.

According to Counterpoint Research, Google built about 9 million Pixel smartphones last year, and the discussions in India underline its plans to move production beyond China and Vietnam. 

Key Google executives visited India in June for the partnership talks, including Ana Corrales, operating chief of its consumer hardware arm, and Maggie Wei, a senior director of global sustaining product operations.

In May, India's Technology Minister Ashwini Vaishnaw met with Google CEO Sundar Pichai at its headquarters in Mountain View, California, to discuss local manufacturing drive and India's state-backed technology push.

Price Action: GOOG shares traded lower by 0.56% at $123.36 premarket on the last check Tuesday.

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