According to Nikkei Asia, due to the ongoing tensions between the United States and China, Google has informed its suppliers that starting next year, it plans to move production of all Pixel smartphones, watches, and wireless earphones outside of China.
In recent years, Google has been actively expanding its production capacity in Vietnam and India to reduce reliance on Chinese manufacturing, but a significant portion of production still remains in mainland China. Sources revealed to Nikkei that the successful development and production of high-end Pixel phones in Vietnam this year have boosted Google’s confidence, leading to the decision to move all Pixel production out of China by 2027. This is because the production process for phones is more complex than that for smartwatches and earphones.
If Google’s plan materializes, the company will become the second global brand after Samsung to “decouple” smartphone production from the Chinese market.
“Compared to Apple, Google has no baggage [in leaving China] because it does not sell Pixel phones in the Chinese market,” a source told Nikkei. “Progress in Vietnam has been smooth because Samsung has already established a smartphone supply chain ecosystem there, which Google can also leverage.”
Multiple sources disclosed that despite soaring storage chip costs, Google has informed suppliers of plans to increase this year’s Pixel phone shipments by 8% to 10% compared to around 12 million units shipped last year. Google hopes that Pixel smartphones will serve as a significant entry point for consumers to use Gemini artificial intelligence (AI) applications.
Last week, Google released its latest flagship models, Pixel 11, Pixel 11 Pro, and Pixel 11 Pro Fold, with the model equipped with 256GB of storage space starting at $899, higher than the previous generation Pixel 10 (starting at $799 with 128GB of storage space).
Google has not responded to requests for comments from Nikkei Asia.