Google Exits China, Expands Production in India and Vietnam

Google has decided to move its entire Pixel range of smartphones, earbuds, and smartwatches out of China due to ongoing tensions between the United States and China.

This decision will benefit India and Vietnam as they solidify their positions as alternative manufacturing bases for Google. The latest Pixel model was successfully developed and produced in Vietnam, showcasing its capabilities in producing complex products.

As a result, Google may gain access to some of Samsung's production systems in Vietnam. Unlike Apple, Google does not sell its handsets in the Chinese market, making its exit easier.

Despite the additional cost of AI-ready chips, Google plans to increase its Pixel smartphone production by 8-10% this year as part of its strategy to use these phones as a portal to its AI products like Gemini.