According to word reports Nikkei Asian Review, Google is trying to accelerate the transition of its Pixel phone production line from China to Vietnam, with the desire to build a cheap supply chain in Southeast Asia, which is a stepping stone for development ambition. hardware business of the company.
Source of Nikkei said Google worked with a partner to convert an old Nokia factory in Bac Ninh province, starting production of Pixel phones this summer. This is also the location where Samsung has developed the supply chain and smartphone production, so Google will be able to easily find experienced workers in a short time.
The shift of production lines from China to Vietnam also shows that Google is worried about the US-China trade war, amid issues related to taxes and labor costs in China could soar. According to sources, Google plans to move the entire hardware production line for the US market out of China, including Pixel phones and Google Home smart speakers.
Placing a production line in Vietnam will help Google achieve its hardware development ambition, with the goal of shipping about 8 to 10 million smartphones this year, more than double last year. Although Google’s Pixel phone brand is only a small part of the smartphone industry – not even ranked in the top 10 globally, according to market research firm Counterpoint – it has grown very fast. .
After launching the low-cost Pixel 3a in May last year, Google became the fifth-largest smartphone maker in the U.S. in the second quarter of 2019, gaining market share from rivals despite the industry’s fall. recession status. In 2018, Google shipped about 4.7 million smartphones, of which 70% of sales were from the US market.