Google is working to move the production of its Pixel smartphones from China to Vietnam, as the company seeks to avoid higher production costs in China, as well as the danger of Trump issuing tariffs on Chinese goods that could raise prices their phones, according to a report from Nikkei .
This is not the first Google move from China. The company is reportedly working to move production of Nest hardware and server for devices connected to the US to Taiwan and Malaysia earlier this year, also to avoid tariff increases due to the US-China trade war.
While the report Nikkei does not specify with which partner Google works to produce Pixel phones in Vietnam, Bloomberg & # 39; s Tim Culpan points out that it is likely FIH Mobile, a subsidiary of Foxconn, which previously bought the Nokia factory in Vietnam from Microsoft. This is in line with the report of Nikkei which states that Google plans to convert an old Nokia factory to produce its own phones.
It is said that Google is commencing the transfer of part of Pixel 3A's production to the Vietnam plant, with the aim of moving production there before the end of this year. For now, new products are expected to be launched in China, which will likely include the upcoming Pixel 4. Google is not the only company looking at Vietnam to make phones: an earlier report Nikkei notes that Apple may to be looking to transfer between 15 and 30 percent of iPhone production in Vietnam and India to avoid tariffs.