Google Pixel production shifts outside China by 2027

Google Pixel production is set to move entirely outside China by 2027, as Google prepares to manufacture its smartphones, smartwatches and wireless earbuds through facilities in other countries, according to a report by Nikkei Asia.

The company has expanded its manufacturing capacity in Vietnam and India in recent years. The successful development and production of high-end Pixel smartphones in Vietnam this year has given Google greater confidence in moving ahead with the planned shift.

The transition would make Google the second major global smartphone brand after Samsung to move its entire smartphone production outside China. Google’s limited presence in China’s consumer smartphone market also makes the move less complex. Pixel phones are not sold in China, reducing the commercial impact of leaving the country’s manufacturing base.

Google is also maintaining its shipment targets despite rising memory chip prices. The company expects Pixel shipments to grow by 8 to 10 percent this year, compared with about 12 million units last year. Competitors including Xiaomi, Oppo and Vivo have cut their shipment forecasts as component costs rise.

To strengthen its negotiating position with memory chip suppliers Micron and SK Hynix, Google is combining orders for its cloud computing operations with those for smartphones. The strategy could help the company manage higher component costs while protecting production targets.

Google sees Pixel devices as an entry point to its Gemini artificial intelligence services. That strategy has encouraged the company to absorb some of the increase in component costs rather than reduce its sales targets. A supplier executive told Nikkei Asia that higher iPhone prices could also give Google an opportunity to gain market share from Apple in the United States, Japan and Europe.

The production shift reflects a broader effort by technology companies to diversify supply chains amid persistent tensions between the United States and China. Apple faces a more difficult transition because it sells iPhones in China and remains heavily dependent on Chinese manufacturing.

Apple chief executive Tim Cook has said the company expects higher memory chip costs across its product range this quarter. Apple has already raised prices for some MacBook, iPad and iPhone models sold in Japan.