In light of the recent events that have taken place between both the US and China, Google is now looking to move the production of its Pixel smartphones from China to Vietnam. This doesn’t just come as a result of the US trade war, but is also is a direct implication or the increased labor costs that now occupy the Vietnamese market.
According to the recent speculation, Google is making progress on converting an old factory which was there for the production of Nokia phones for the production of its very own Pixel devices. Specifically enough, it has been touted that the company is looking to shift the production of some of its Pixel 3a smartphones to Vietnam before 2019 comes to a halt.
The speculation also suggests that Google is planning a long term scoop – which will result in the company eventually moving all of its US hardware products outside of China – with this also including the Google home speakers – to go along with the Pixel production. As far as the production for the Google home speakers go, it has been suggested that some of the production will move to Thailand. However, for now, this does not mean that Google will completely cut off ties with China as far as production of its products goes.
A source has said : “Google are likely to keep some activities inside China. The US company knows that if it is going to be serious about making hardware, it could never give up the massive Chinese market.” However, they also understand that, due to rising costs and the macro-environment, they need to have production outside China for the long terms in order to support their hardware manufacturing.”
Before 2019 comes to an end – it has been reported that Google has big aspirations over the how the year turns out – when it looks upon it some years from now. It has been suggested that the company plans on to ship in between of eight and ten million smartphones in the year, and if this turns out to be achieved, it will represent a figure two times that of last year’s one. If achieved, the numbers won’t be of too great a surprise though, as the company has previously stated that it managed to sell twice as many phones in Q2 2019 when compared with Q2 2018. The hugely successful Pixel 3a series made a huge contribution to these numbers.