Google Shifts Pixel Production Out of China Amid US-China Tensions

Google is shifting its production of Pixel smartphones, watches, and wireless earbuds out of China starting next year. The move comes amidst ongoing tensions between Washington and Beijing. Google has been expanding capacity in Vietnam and India to reduce its dependence on China.

The company's confidence in moving all Pixel production out of China by 2027 stems from the successful development and production of high-end Pixel phones in Vietnam this year, according to people with direct knowledge of the matter.

Unlike Apple, which has a significant presence in the Chinese market, Google does not sell Pixel phones in China. This gives it more flexibility to move its production out of the country.

Google is also increasing its Pixel smartphone shipments by 8-10% this year, despite the rising cost of memory chips. The company hopes that its smartphones will serve as an important portal for consumers to use its Gemini AI applications.