Google decides Pixel smartphone production in Vietnam
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Google decides Pixel smartphone production in Vietnam

Google decides Pixel smartphone production in Vietnam

  • Google is planning to move most of its American-bound hardware out of China, including the Pixel phones and its smart speaker Google Home, Nikkei said
  • labor costs is going high in China along with added pressure from rising tariffs due to the ongoing Sino-U.S. trade tensions.

Google is shifting its Pixel smartphone production to Vietnam from China starting this year as it builds a cheap supply chain in Southeast Asia, the Nikkei business daily reported on Wednesday.
The move comes as labor costs are rising in China along with added pressure from spiraling tariffs due to the ongoing Sino-U.S. trade tensions.

Google’s aggressive hardware campaign is to heap pressure on second-tier mobile makers such as LG Electronics and Sony, which are struggling as the industry faces its third consecutive year of decline.
By diversifying its production into Vietnam, Google hopes to ensure good production of the Pixel range, a showcase for its Android operating system.

Round 82% of the world’s smartphones, Android is facing a big threat from Chinese company Huawei Technologies who is world’s second largest handset maker, which in August unveiled its OS for mobile platform Harmony. It is noticed that 72% of Google’s smartphone sales in 2018 year were in the United states which is the biggest market, followed by the U.K. and Japan.

Under current plans, Google is planning to shift some of its production of the Pixel 3A phone from China to Vietnam before the end of this year.Some production is likely to be moved to Thailand as per sources.However New product development and initial production for its hardware likely to keep working in China currently.

Google are likely to keep some activities inside China as per sources. The U.S. company knows that if it is going to be very serious about making hardware, it could never give up the massive Chinese market one of the sources said. Google is the latest to seek safety by diversifying its production as the trade war is going fase.

Dell has transferred their server nodes production unit from China to new location – dodge Washington, while also shifting its unit for notebook production to Taiwan and other country such as Vietnam, Thailand and well as the Philippine.

Apple also has started to evaluate how it might diversify its supply chain also , though it remains much reliant on China with more than 92% of its hardware manufactured in the country.

Google had significantly shifted its hardware business , 2,000 handset engineers are recently hired from the HTC. It has also been lifting up hardware engineers and supply chain experts from Apple.
Just like other internet technology companies, Google sees hardware as a means of getting users into its ecosystem of software portfolio just like Amazon and Alibaba Group Holding are also using voice-activated smart speakers to get-up-and-go customers to their e-commerce ecosystem.

Google decides Pixel smartphone production in Vietnam

Google decides Pixel smartphone production in Vietnam
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