Google will produce Pixel phones in Vietnam
Google's first Pixel phone factory was converted from a Nokia phone factory in Bac Ninh province.

The choice of Bac Ninh helps Google take advantage of experienced labor force from Samsung or Nokia's factories.

According to Nikkei, this is Google's first step in transforming the supply chain to Southeast Asia. In addition to expanding to the growing hardware sector, it also helps Google solve two major problems with factories in China today: increasing labor costs and tax rates are pushed higher by the US-China trade war.

Google is expected to move all of its manufacturing units outside of China, including the Pixel phone factory and Google Home smart speakers. Particularly in Vietnam, this search giant will pre-order some Pixel 3A phone factories. It is expected that the conversion will be completed before the end of this year.

Despite being an Android operating system supplier for 80% of smartphones in the world today, Google is not strong in the hardware segment. In 2018, the manufacturer sold 4.7 million phones, accounting for 0.3% of the global market share. By 2019, the results were better as they sold 4.1 million units in half a year, most of them Pixel USD phones priced at $ 399. Google is expected to ship around 8-10 million phones this year, bringing sales to double last year. The relocation of the factory from China to Southeast Asia will be a stepping stone for this hardware development plan.

According to analysts, the current supply chain size of Google is not as large as Apple so the conversion will also be easier. If the move is completed during this period, Google will have more time to develop, and best prepare for challenges from Huawei - which has a relatively strong hardware segment and is also encroaching on the software segment. with Harmony operating system.

Luu Quy (according to Nikke