Google to Move Pixel Production Out of China by 2027
Google intends to move production of its Pixel smartphone, smartwatch and wireless earbuds away from China to Vietnam and India by 2027. The move is part of Google’s drive to diversify its supply chain and lessen reliance on Chinese manufacturing amid US-China trade concerns.
A major shift in the way Google makes Pixel phones is in the works. Last week, Google unveiled its Pixel 11 line of smartphones. Now, rumours have it that the business is going to soon relocate Pixel phone manufacturing from China. Concurrent with this change is the company's relocation of production to Vietnam and India.
Starting next year, Google intends to relocate manufacturing of all Pixel smartphones, smartwatches, and wireless earbuds from China. The goal is to finish the transition by 2027, as it has already informed suppliers of this intention. By the time Google unveils the Pixel 12 series, the business may have moved manufacturing away from China.
Why Google Shifting its Manufacturing From China?
In light of the current US-China trade war, this is reportedly part of Google's strategy to diversify its supply chains. In an effort to lessen its reliance on China, Google has been increasing its production capacity in Vietnam and India in the past few years. Yet, it continues to house a sizable portion of its Pixel manufacturing operations in China. Unlike making smartwatches or earbuds, which are simpler to produce, the business began developing and producing high-end Pixel phones in Vietnam this year.
Because of how well this adjustment worked, Google plans to stop making all of its Pixels in China by 2027. Going ahead, all Pixel phones will probably be made in Vietnam. This would separate Google's smartphone production from China, making it the second global brand to do so, following Samsung. Even though Apple has partnered in India to relocate manufacturing from China, the country is still home to some of Apple's devices. Since Google Pixel phones are not sold in the Chinese market, the company could not have any incentive to relocate manufacturing out of China.
Google’s Smartphone’s Market Share on the Rise
The Pixel 11 series is being heavily promoted by Google. Despite skyrocketing memory chip prices, the business still plans to increase Pixel shipments by 8-10% this year, up from 12 million units last year. Remember that Google is experiencing respectable growth, especially in the Indian market. In India's premium smartphone market, Google is outpacing all other brands in terms of growth, according to Counterpoint Research.
The present memory scarcity has reportedly prompted Google to strengthen its negotiating position in memory chip discussions. There have been rumours that Google has been negotiating with Micron, Samsung, and SK Hynix to bundle orders for cloud computing chips with orders for smartphones. This change exemplifies how manufacturers are reconsidering their reliance on a single country for hardware supply chain stages and are instead looking at alternative locations.
