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Pixel Phone Unit Of Google In China To Be Shifted To Vietnam: Nikkei


08/30/2019


Pixel Phone Unit Of Google In China To Be Shifted To Vietnam: Nikkei
The trade war between the United States and China is benefiting some other Asian economies which includes Vietnam and the latest sign of this is confirmed by the latest decision of Google to shift the manufacturing unit for its Pixel range of smartphones into this South East Asian country from China.
 
This summer, Google started to partner with the company, which, according to a report published by the Nikkei Asian Review, is most likely to be Foxconn – a major supplier and assembler for Apple's iPhones. Google entrusted the partner to transform an old Nokia factory in the northern Vietnamese province of Bac Ninh into one that would be able to sustain production of Pixel smartphones.
 
Samsung too has its smartphone supply chain in the Bac Ninh province, which was built about a decade ago, and this region is just about 80 miles from the border with China.
 
The current plans of Google include the US tech giant first shifting some production of the entry-level Pixel 3A phone from China to Vietnam by the end of this year, claimed that report in the Japanese weekly business journal. The company then plans to establish its production business in Vietnam as a crucial part of the strategy of the company to gain a foothold in the world smartphone market with the aim of doubling the shipment of smartphones this year from 8 million to 10 million.
 
According to figures from research firm IDC, so far in the first half of the current year, 4.1 million smartphones have already been shipped by Google even though the company had only managed to ship about 4.7 million smartphones last year, which equated with just 0.3 per cent of the total smartphone shipments last year. This growth in shipment for Google has primarily been driven by the entry-level Pixel 3A that was launched by the company earlier this month. It is priced at $399.
 
The Nikkei report also added that eventually, shifting of all of the production of its hardware products that are made to be sold in the US market to Vietnam is being planned by Google. The products would include Pixel range of smartphones and the Google Home smart speaker line. The company is also looking at other countries neighboring China such as Thailand.
 
However, the company would continue to retain in China its new product development unit and the initial production run for its hardware lineup.
 
This move by Google is not entirely surprising. 
 
According to a report published by the Nikkei Asian Review in June, between 15 per cent and 30 per cent of its iPhone production was being planned to be shifted by Apple out of China and into Vietnam and India so that it can bypass the import tariffs on Chinese goods imposed by US president Donald Trump.
 
And according to another report published in Nikkei last month, plans for relocating up to 30 per cent of their notebook production out of China were being finalized by personal computer makers HP Inc. and Dell Technologies. Additionally, moving some of their production out of China is also being planned by Microsoft, Nintendo, Sony, and Amazon and the products would include game console and smart speaker.
 
(Source:www.forbes.com)