Concerned about the escalation of trade tensions between the US and China as well as the lockdown situation because of Covid-19 in the country of billions of people, Google may move its smartphone orders in the near future to partner factories in Vietnam.
Previously, the US technology giant had a plan to produce smartphones in Vietnam. However, due to the outbreak of the pandemic, as well as taking advantage of its strong supply network, the company decided to choose China as its main production base. However, Beijing’s strict blockade policy in response to Covid-19 has forced the company to recalculate.
According to data from analytics firm Canalys, Google’s Pixel 6 series of phones is currently recording strong demand in North America. In the first quarter of 2022 alone, about 1.2 million units were shipped, increasing its market share in the region to 3%, up from 1% over the same period in 2021.
The company plans to continue using the production line at its factories in China to produce the next-generation product, the Pixel 7, the device is not expected to have too many changes in features compared to the Pixel 6. In the immediate future, Google will shift part of the order to production in Vietnam for training purposes.
Sources suggest that Google’s new smartphone production line in Vietnam will be installed after 2023 and will be responsible for producing next-generation models.
FIH, a subsidiary of Foxconn, is responsible for the main production of Google’s Pixel series, while Compal Electronics is in charge of supplying some of its parts. Both companies have manufacturing plants in Vietnam and can process Google’s order requests at any time.