© google General | August 30, 2019
Google dialing in Vietnam for Pixel phone production
Google has announced it will shift production of its Pixel smartphone from China to Vietnam to take advantage of a low-cost supply chain in Southeast Asia.
To ramp-up hardware production goals, Google began converting a former Nokia factory in the northern Vietnamese province of Bac Ninh this summer, to prepare for the production of Pixel phones, according to the Nikkei Asian Review. Bac Ninh is also the place where Samsung developed its smartphone supply chain a decade ago, giving Google the benefit of an experienced local workforce. With the combination of increasing labor costs, tariff war with the U.S., and growing environmental regulations in China, alternate production facilities are becoming more common in Southeast Asia. The same article cited sources who suggested that Google plans to move production of most of its American-bound hardware outside of China, including Pixel phones and Google Home smart speaker. While sales numbers indicate the Google Pixel phone is growing in popularityꟷGoogle aims to ship 8-10 million smartphones this year, double from one year agoꟷit is not enough to rank in the global top 10, according to tech research firm Counterpoint.