Google will double its Pixel production this year; the company is moving from China to Vietnam. The trade war between the US and China, which led to the imposition of tariffs on imports from both countries. And it is forcing Google to make a change. A report published today in the Nikkei Asian Review states that the technology giant is moving “aggressively”. By changing the production of its hardware in the US from China to Vietnam. With this objective, Google converted an old Nokia factory in northern Vietnam. So, use it to produce the new Pixel 4 series. The plant, in the province of Bac Ninh, is where the smartphone supply chain from Samsung is located. This means that Google should be able to build its own supply chain and find qualified workers in the country.
Google is trying to avoid a 15% tariff on mobile phones imported into the US. From China on December 15th. The smartphone tax should have started on September 1. But President Donald Trump has delayed the start date of some products. So that they are no longer expensive for consumers during the Christmas shopping season. This is because tariffs on Chinese imports are a tax paid by US companies. And it is up to them to absorb or not absorb the additional cost or transfer part or all of them to consumers in the form of higher prices. For example, Apple currently charges the importation of some cases for iPhone and iPad. Instead of increasing the retail price of these accessories, you are paying taxes. So that consumers do not have to search more in their pockets to buy these items. However, on September 1st, rates will apply to two of Apple’s most popular devices, AirPods, and the Apple Watch. It is not known if Apple increases the price of these two products.
Google tries to double smartphone production this year
The report cites a source claiming that Google plans to double smartphone production this year from 8 to 10 million units. The mid-range Pixel 3a and Pixel 3a XL were a success in the US. With prices that provide many more consumers with excellent camera and photo processing capabilities. During the second quarter, the brand was the fifth most popular in the US. And this year, with the high-end Pixel 4 line, Google goes right after Apple and Samsung. The new models to contain a radar-based chip that lets users control certain aspects of the phone with hand gestures. The replacement of the fingerprint scanner by a facial recognition system will be as secure as Apple’s Face ID. And for the first time, Google will place several cameras on the back of their phones. Last year, Google sent 4.7 million phones and 70% of those units were delivered in the US. Therefore, avoiding tariffs on Chinese imports is very important for Google. In fact, he plans to move part of the production of the Pixel 3a series from China to Vietnam by the end of the year.
Google’s smart speaker production will also move from China. The third-largest speaker manufacturer in the world during the second quarter, the company will transfer the assembly of devices to facilities in Thailand. And although leaving China is an important approach for Google, those familiar with the company’s plans claim that the development of new products and their initial production will remain in China.
(Via: Nikkei Asian Review)