Google Moves Pixel Production to Vietnam to 'Escape' Import Rates

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Google Moves Pixel Production to Vietnam to 'Escape' Import Rates

According to the financial newspaper Nikkei, Google intends to move some of its hardware production from China to Vietnam. This means that the upcoming Google Pixel 4 and even Google Home will be produced in Vietnam and Thailand, respectively.

This change is obviously motivated by the trade war between China and the United States. American companies have relied for years on the low production costs of Chinese factories but that could change.

Google doesn't want to pay the high import taxes

Donald Trump and his administration decided to implement up to 25% import duties on Chinese products. This casts a rather large injury shadow on the future of Google and other companies that depend on Asian imports.

If they maintain the production line in China, the price of the pixels would increase substantially and have a negative impact on sales. Google has made good sales with the Pixel 3a and will not want to ruin it with an unnecessarily expensive Pixel 4.

Google may use old Nokia factories

It is well known that large companies prefer to keep their production on Asian land due to the low cost. As such, Google will leverage existing, well-staffed facilities with the 'all-made baby food'.

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