Google is working to relocate the production of its Pixel smartphones from China to Vietnam because the company is aiming for higher Chinese production costs and the threatening concern of Trump issued tariffs on Chinese goods that would raise prices on its phones, according to a report of Nikkei.
This is not the first Google move from China. The company was allegedly relocating the production of Nest and Server hardware for devices destined for the US to Taiwan and Malaysia earlier this year, also to prevent rising rates due to the US-China trade war.
While the Nikkei report does not indicate with which partner Google works to produce Pixel phones in Vietnam, BloombergTim Culpan points out that it is probably FIH Mobile, a subsidiary of Foxconn that previously bought the Vietnam factory from Nokia from Microsoft. That corresponds to the Nikkei report, claiming that Google plans to convert an old Nokia factory to produce its own phones.
It is said that Google will start moving part of the production of the Pixel 3A to the factory in Vietnam, with the aim of moving production to the end of this year. For the time being, new products are expected to be built in China, which are likely to include the upcoming Pixel 4. Google is not the only company that monitors Vietnam for phone production: one earlier Nikkei report notes that Apple may want to shift between 15 and 30 percent of iPhone production to Vietnam and India to also avoid rates.