Google to move smartphone production from China to Vietnam

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Google To Move Smartphone Production From China To Vietnam

Google is planning to move the production of its Pixel smartphones from China to Vietnam as the company seeks to avoid higher Chinese manufacturing costs as well as the looming concern of Trump-issued tariffs on Chinese goods that would raise prices on its phones, according to a report by Nikkei Asian Review.

Together with a local partner, Google started work this summer to convert an old Nokia factory in the northern Vietnamese province of Bac Ninh to handle production of Pixel phones, two people familiar with the company’s plans said. This is the same province where Samsung developed its smartphone supply chain a decade ago, so Google will have access to an experienced workforce.

The Vietnam production lines will be a key part of Google’s drive for growth in the smartphone market, the report said. Google aims to ship some eight to ten million smartphones this year, double from a year ago. While Google’s Pixel smartphone brand is still a minor player in the industry. its market share is growing rapidly.

By diversifying its production into Vietnam, Google hopes to ensure sustainable production of the Pixel range, a showcase for its Android operating system. Installed on 80 per cent of the world’s smartphones, Android is facing a challenge from Chinese rival Huawei Technologies, the world’s second largest handset maker, which in August unveiled its own mobile platform, Harmony OS.

Google is the latest to seek safety by diversifying its production as the trade war intensifies. Hewlett-Packard and Dell have relocated their server production away from China to dodge Washington’s punitive tariffs, while also shifting some notebook production to Taiwan and other Southeast Asian countries such as Vietnam, Thailand and the Philippines. Apple also has started to evaluate how it might diversify its supply chain, though it remains heavily reliant on China with more than 90 per cent of its hardware manufactured in the country.

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Google is planning to move the production of its Pixel smartphones from China to Vietnam as the company seeks to avoid higher Chinese manufacturing costs as well as the looming concern of Trump-issued tariffs on Chinese goods that would raise prices on its phones, according to a report by Nikkei Asian Review. Together with a local partner, Google started work this summer to convert an old Nokia factory in the northern Vietnamese province of Bac Ninh to handle production of Pixel phones, two people familiar with the company’s plans said. This is the same province where Samsung developed its smartphone...

Reading Time: 2 minutes

Google To Move Smartphone Production From China To Vietnam

Google is planning to move the production of its Pixel smartphones from China to Vietnam as the company seeks to avoid higher Chinese manufacturing costs as well as the looming concern of Trump-issued tariffs on Chinese goods that would raise prices on its phones, according to a report by Nikkei Asian Review.

Together with a local partner, Google started work this summer to convert an old Nokia factory in the northern Vietnamese province of Bac Ninh to handle production of Pixel phones, two people familiar with the company’s plans said. This is the same province where Samsung developed its smartphone supply chain a decade ago, so Google will have access to an experienced workforce.

The Vietnam production lines will be a key part of Google’s drive for growth in the smartphone market, the report said. Google aims to ship some eight to ten million smartphones this year, double from a year ago. While Google’s Pixel smartphone brand is still a minor player in the industry. its market share is growing rapidly.

By diversifying its production into Vietnam, Google hopes to ensure sustainable production of the Pixel range, a showcase for its Android operating system. Installed on 80 per cent of the world’s smartphones, Android is facing a challenge from Chinese rival Huawei Technologies, the world’s second largest handset maker, which in August unveiled its own mobile platform, Harmony OS.

Google is the latest to seek safety by diversifying its production as the trade war intensifies. Hewlett-Packard and Dell have relocated their server production away from China to dodge Washington’s punitive tariffs, while also shifting some notebook production to Taiwan and other Southeast Asian countries such as Vietnam, Thailand and the Philippines. Apple also has started to evaluate how it might diversify its supply chain, though it remains heavily reliant on China with more than 90 per cent of its hardware manufactured in the country.

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