Google will relocate the production of smartphones Pixel from China to Vietnam, announces the Japanese media Nikkei. This decision would be directly related to the Sino-US trade war.
The trade war between China and the United States is affecting many industries. The Huawei case is attracting attention – the Mate 30 should be deprived of the Google Android – and Sino-US tensions could now shake up the plans of the Internet giant. The Japanese newspaper Nikkei reports that Google will soon transfer the production of its smartphones Pixel from China to Vietnam. This measure would be motivated by rising labor costs in China and increases in tariffs imposed by Washington.
Pixel smartphones and Home speakers are affected
With a partner, Google has decided to turn to an old Nokia factory to produce its smartphones, in a province (Bac Ninh, northern Vietnam) where Samsung has also developed a supply chain for its mobiles there are ten years. A presence of major builders established long and which should allow the firm of Mountain View to access an experienced workforce. In the long run, Google intends to transfer most of its production of devices destined for the US market out of China. In addition to pixels, Google Home connected speakers would also be affected. According to Nikkei, the Californian company will transfer part of the production of Pixel 3A to Vietnam before the end of the year. Regarding its connected speakers, part of the production should be moved to Thailand while development and initial manufacturing will still be in China.
This decision comes as Google plans to deliver 8 to 10 million smartphones this year, twice as many as a year ago. A strengthened presence in Vietnam would allow Google to achieve its goals in hardware. After the success of Pixel 3 and Pixel 3a, the American giant will present its Pixel 4 in September. The presentation of these smartphones should take place on October 4th.