Alphabet’s Google is reportedly set to shift production of its Pixel smartphones from China to Vietnam, due to rising labour costs and the pressure of an ongoing trade war between the country and the US.
Nikkei Asian Review reported the company is looking to build a cheap supply chain in Southeast Asia and it is targeting a production base in Vietnam.
The company is apparently exploring ways to move hardware that will be sold in the US, out of China, including its Pixel phones and smart speaker Google Home.
Google plans to ship 8 million to 10 million Pixel smartphones in 2019, double the amount from last year.
Some production of the Pixel 3A device could move to Vietnam before the end of the year, said sources. Production of its Google Home smart speaker is likely to be moved to Thailand, but product development will continue in China.
Rumours of Alphabet’s move away from China follows comments made by Apple CEO Tim Cook, who warned that potential tariffs resulting from the ongoing China trade war would also hurt his company, particularly with respect to competition with Samsung.
Apple’s products are also largely made in China, and its MacBooks, iPhones and iPads could be subject to a new round of tariffs due in December.Subscribe to our daily newsletter Back