The Alphabet Inc-led search giant Google has made some major investment changes. In a recent turn of events, it has come to light the company is planning on moving its Pixel smartphone production to Vietnam. Currently, they were producing their flagship devices in warehouses located across China. However, starting this year, they will be shifting the operations to Vietnam.
The main reason why they have been speculated to make this move, is because they believe that they will be headed towards a cheaper supply chain, if their production operations are based in the South-East regions of Asia. The first media publication to have published this news was Chinese daily business newspaper Nikkei. They published this news in the early hours of Wednesday.
As mentioned previously, Google made the decision to move their production operations from China, especially because the costs of labour in China has been increasing in the recent past. In addition to this, they are also experiencing pressure from the tariff costs that have undergone the impact of the Sino-U.S. trade tensions. Therefore, the search giant has finally decided to take matters into their own hands. While this might be a bit inconvenient for them at the moment, it is only temporary. Once they are able to move the operations to Vietnam, everything will be smooth-sailing then on. Along with their flagship smartphones, the company will also be moving the production of other major devices that they produce such as Google Home.
The company is currently planning on shipping nearly 8 to 10 million smartphones this year. It is worthy to note that the shipping has almost doubled from the previous year. This will help them in making Vietnam a key part of Google’s drive towards an impending growth. The search giant is expected to shift its production of Pixel 3A smartphone to Vietnam. They will be doing this shift before the end of this year, the Nikkei further reported along with citing sources. However, as far as its smart speakers are concerned, it is highly likely that the company is able to move its smart speaker production to Thailand. The company will be viewing new product development as well as initial production for its hardware line-up and continue to keep it in China itself. The search giant has not been able to respond with a comment on this matter. They are expected to comment on this matter sometime soon.