Apple to Pixel, India emerging as outsourcing powerhouse in mobile phones

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Apple has already put India firmly on the world outsourcing map by getting increasing number of iPhones manufactured in Indian factories. It is now the turn of another tech giant Google to cement that position by sourcing its Pixel smartphone from India. Manufacturing major Dixon Technologies will supply the prestigious device from India, The Times of India has reported.

Dixon bagging the lucrative contact comes just six months after Google’s announcement that it would be sourcing Pixel from India. In October 2023, its management had said that it was scouting for manufacturers and partners to create the supply chain ecosystem for localising Pixel8 and its versions.

“Dixon has been chosen to make Pixel in India. Trial production is expected to begin soon,” bureaucrats and executives in the industry told the newspaper. “Google wants to use India production for catering to needs of domestic market and potentially for exports as well,” the officials said. However, Dixon executives refused comment.

“We shared plans at #GoogleforIndia to manufacture Pixel smartphones locally and expect the first device to roll out in 2024. We’re committed to being a trusted partner in India’s digital growth — appreciate the support for Make In India,” Alphabet CEO Sundar Pichai wrote on micro-blogging platform X last year.

Needless to emphasise, like Apple, Google is also attracted by the benefits under the production-linked incentives scheme extended by the government to mobile phone manufacturers.

Officials said Google was holding discussions with different companies for outsourcing for over a year and the name of Dixon was finalised recently.

Google’s decision comes against the background of smashing success by the outsourcing operations of Apple that has been trying to find out a second major outsourcing centre beyond China. Most important, Apple is not only selling the produce in India in India but also channelising an increasing number of phones in the global markets.

The Cupertino-based MNC has kicked off FY25 with a big bang rise in exports of made-in-India iPhones in April when exports rose by almost 100% anf touched $110 crore (or Rs 9,000 crore) from $58 crore a year ago. The number is all the more conspicuous since April has no festivities in any major markets in the world. Experts are of the opinion that at this rate Indian exports could easily breach the Rs 1 lakh crore mark in this financial year. They also said that 14-15% of the global iPhone production has already shifted to factories in India and it could rise to 26% by 2026.

The rise in iPhone exports appears all the more stupendous when considered against the backdrop that only Rs 3,000 crore worth of exports were recorded in FY21 before the PLI scheme was introduced.