Google will stop producing its Pixel 4 mobiles in China to manufacture them in Vietnam. The trade war between the United States and China is the main factor in making this change.
For some time we have accepted that all technological production comes from China due to its particular mix of low wages, good level of industrialization and low transport and import costs. Now with the trade war they face one of the biggest legal overheads they have ever had, something that makes manufacturing the Pixel 4 in China not such a profitable option.
According to a Nikkei report, Google is already preparing a production line in Vietnam to be able to carry the manufacture of the Pixel 4 there. The country's infrastructure is not that good and logistics have become a bit complicated, but they face serious tariffs if they carry mobile phones between China and the United States. This logistical mess that involves training employees and reorganizing their supply and distribution lines is a gamble in the face of the tariffs to come.
Vietnam will host the production of Google mobiles
The plan is to manage to manufacture up to 10 million mobile phones before the end of the year, something that in the days of the Nexus would be unthinkable, but the popularity of the Google Pixel 3a has led to the economic models of Google being considered as good phones to economic prices, being able to face the competition of Chinese manufacturers.
It remains to be seen to what extent they can reduce costs and if this translates to a mobile at a competitive price. Surely the first installments of the Pixel 4 are mobiles made in China to gradually focus all production in Vietnam. We still do not know the specific specifications beyond a higher refresh rate screenWell, we are waiting for an announcement in the next few days about Android 10 and the new Google Pixel models.
Source Nikkei
