The COVID-19 pandemic has forced the tech industry to deal with various issues, particularly regarding supply chain management and manufacturing. In response to these challenges, Google has announced plans to shift a portion of its production of the Pixel 7 series smartphones to India, as reported by The Information.
Why India?
The shift in production to India aims to mitigate the effects of COVID-19-related lockdowns in China, which have caused significant delays and disruptions to supply chains across various industries. The trade tensions between China and the US have further exacerbated these issues. With these challenges in mind, Google is proactively moving a portion of its production to India.
Bidding Invitations
Google has reportedly invited bids from Indian manufacturers to produce between 500,000 to 1 million Pixel smartphones, representing 10% to 20% of the expected yearly production of Pixel smartphones. This shift in production could help the company reduce its dependence on China and diversify its supply chain.
The move to India could also significantly impact the country’s manufacturing sector, creating new jobs and boosting the economy. It aligns with the Indian government’s push for greater investment in the country’s manufacturing capabilities and reducing its dependence on imports.
Impacts and Challenges
While moving production to India could help Google avoid potential supply chain disruptions, it has its challenges. One of the primary issues is the need to import components from China to India, which could increase costs and create potential production delays. However, the company believes that the benefits of diversifying its supply chain outweigh the risks.
TechCrunch has noted that Google’s decision to move production to India is unsurprising, given the current trade tensions between the US and China. The publication has also reported that other tech giants, such as Apple and Samsung, are exploring options to diversify their supply chains.
Meanwhile, The Verge has reported that Google’s Pixel 7 series devices are set to launch on October 6, 2022. The devices will feature significant upgrades, including improved camera capabilities and faster processors. With the shift in production to India, it remains to be seen how this will impact the devices’ launch and availability.
Conclusion
Google’s decision to shift a portion of its production of the Pixel 7 series smartphones to India is a strategic move aimed at reducing the company’s dependence on China and diversifying its supply chain. While there are challenges associated with this move, it could have a significant impact on the Indian economy and create new job opportunities. As we await the launch of the Pixel 7 series devices, we will closely monitor how this shift in production impacts the devices’ availability and performance in the market.
