Google, likely in partnership with Foxconn, is moving aggressively to relocate production from China to a former Nokia factory in northern Vietnam.
The factory will cover mid-range Pixel smartphones and other hardware for the U.S. market. This re-positioning of its supply chain reflects the ongoing tariff war between the U.S. and China and an attempt to lower costs.
China is not being abandoned entirely. Production will remain there for the Chinese market as well as initial runs of new products. Further, product development remains in China.
Despite a market slowdown, Google is a success story with expectations to ship 8 – 10 million phones this year, nearly 2x the prior year. Moving production out of China is part of a wider tech trend to diversify supply chains as the tariff war is hurting profits.
Video Spotlight: Vietnam woos smartphone makers
This post is based on the Nikkei article, Google to shift Pixel smartphone production from China to Vietnam, by Cheng Ting-Fang and Lauly Li, August 28, 2019, and the YouTube video, Vietnam woos smartphone makers by Scott Heidler, March 2, 2015. Image source: Shutterstock / Jane0606
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