Owing to the trade war issue between China and the U.S, labour cost in China is rising. In other to avoid any hassle, Google is moving Pixel phones production to Vietnam.
The increase in tariff on Chinese goods is causing the cost of labour to increase in China and to avoid any rise in the prices of their products which will not be satisfactory for the consumers. So, in order to make thing right, they will be moving out of China. Google aims to ensure sustainable production of the Pixel smartphones, a showcase for its Android operating system which currently powers about 80% of smartphones worldwide.
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According to some sources, Google intends to move production of most of its American-bound hardware outside of China, including Pixel phones and its popular smart speaker, Google Home in the nearest future.
With the look of things, not only Google is moving out of China, HP and Dell have relocated their server production away from China as well to Taiwan and other Southeast Asian countries such as Vietnam, Thailand and the Philippines to avoid the current tariff rise issues.
Google is moving Pixel phone production to Vietnam to partner with an old Nokia factory
Reports from Nikkei reveals Google is working with a partner and started work this summer to convert an old Nokia factory in Vietnam to handle production of Pixel phones. As to who Google is partnering with, Nikkei di not give any information on that. But guessing from a tweet by Tim Culpan a Technolgy Columnist of Bloomberg Opinion Asia, it’s possible it is FIH Mobile, a Foxconn subsidiary that previously bought Nokia’s Vietnam factory from Microsoft.
According to some sources, the shift will start with the Pixel 3a which is expected before the end of this year. New Pixel products will still be produced in China for the time being though.