Google plans to move all Pixel production out of China by 2027

Google Alphabet Inc. ↘ 0.61% has told suppliers it intends to manufacture all Pixel smartphones, smartwatches, and wireless earbuds outside China starting next year, according to an exclusive report by Nikkei Asia published on Tuesday. The move would make Google the second major global smartphone brand after Samsung to completely shift production away from China.business-standard+1

Vietnam Success Fuels the Timeline

The company has been expanding manufacturing capacity in Vietnam and India in recent years, but it was the successful development and production of high-end Pixel smartphones in Vietnam this year that gave Google the confidence to proceed with the 2027 deadline. Making advanced smartphones is more complex than producing smartwatches and earbuds, and Google's progress in Vietnam reinforced the feasibility of exiting Chinese manufacturing entirely.investing+2

Google's limited presence in the Chinese consumer market eases the transition. A source told Nikkei Asia that Google "has no burden to leave China as it does not sell Pixel phones in the Chinese market".business-standard

Holding Firm on Shipments Despite Rising Costs

Despite soaring memory chip prices that have forced competitors including Xiaomi, Oppo, and Vivo to repeatedly cut shipment forecasts, Google expects Pixel shipments to rise 8 to 10 percent this year from roughly 12 million units last year. To strengthen its negotiating position with memory chip suppliers Micron ↗ 4.13% and SK Hynix ↗ 3.04%, Google is bundling chip orders for its cloud computing business with smartphone orders.inkl+2

Google views Pixel devices as a gateway to its Gemini artificial intelligence services, which helps explain the company's willingness to absorb higher component costs rather than slash targets. An executive at a component supplier told Nikkei Asia that Google could gain market share from Apple ↘ 0.11% in the United States, Japan, and Europe if Apple raises iPhone prices further.business-standard

Broader Industry Context

The production shift reflects a wider pattern of technology companies diversifying supply chains amid persistent US-China tensions. Apple, which sells iPhones in China and relies heavily on Chinese manufacturing, faces a far more complex path to diversification. Apple CEO Tim Cook has acknowledged the company expects higher memory chip costs across its product range this quarter, and has already raised prices on some MacBook, iPad, and iPhone models sold in Japan.business-standard