Google to transfer Pixel smartphone production to Vietnam

The move comes as labor costs are rising in China along with the added pressure from spiraling tariffs due to ongoing Sino-US trade tensions.

Google‘s Alphabet Inc. is moving its Pixel smartphone production to Vietnam from China starting this year as it builds a cheap supply chain in Southeast Asia, the Nikkei business reported on Wednesday.

The newspaper added that the company plans to ship about 8m to 10m smartphones this year, double from a year ago, making Vietnam a key part of Google’s growth in the smartphone market.

The US internet giant plans to relocate most of its US-connected devices from China, including Pixel phones and its Google Home smart speaker, Nikkei said.

Google will transfer some Pixel 3A phone products to Vietnam before the end of this year, Nikkei reported, citing sources.

For its smart speakers, some products are likely to be transferred to Thailand, but the company’s new product development and initial production for its hardware lineup will still be in China, the newspaper said.

Google did not immediately respond to a request for comment on the matter, outside of regular business hours./

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