Google Latest Company To Abandon China, Shifts Smartphone Production To Vietnam

Google makes a smart phone?  Who knew?

The push to develop a Vietnamese production base reflects the twin pressures of higher Chinese labor costs and the spiraling tariffs resulting from the trade war between Washington and Beijing. The U.S. internet giant intends to eventually move production of most of its American-bound hardware outside of China, including Pixel phones and its popular smart speaker, Google Home, according to the sources.

The Vietnam production lines will be a key part of Google's drive for growth in the smartphone market. Google aims to ship some 8 million to 10 million smartphones this year, double from a year ago, sources told the Nikkei Asian Review. While Google's Pixel smartphone brand is still a minor player in the industry - not even ranking in the global top 10, according to tech research firm Counterpoint - it is growing rapidly.

The Vietnam production line is a critical component of Google's strategy to boost growth in its Pixel smartphone brand. The company is planning to ship some 8 million units this year, roughly 2x the level from last year.

The Vietnam production lines will be a key part of Google's drive for growth in the smartphone market. Google aims to ship some 8 million to 10 million smartphones this year, double from a year ago, sources told the Nikkei Asian Review. While Google's Pixel smartphone brand is still a minor player in the industry - not even ranking in the global top 10, according to tech research firm Counterpoint - it is growing rapidly.

The mid-priced Pixel, launched in April, helped Google become the fifth largest mobile brand in the U.S. for the second quarter of 2019, grabbing market share despite a wider industry slump.

Google's aggressive hardware campaign is expected to heap pressure on second-tier mobile makers such as LG Electronics and Sony, which are struggling as the industry faces its third consecutive year of decline.

Google shipped fewer than 5 million Pixel units last year, accounting for only 0.3% of the global smartphone market. Nearly all of its smartphone sales were recorded in the US.

Another win for Trump, another loss for the totalitarians.