Google is working overtime to expedite the process of moving base from China to Vietnam. Last year, Google moved the Pixel 4 production line partially, resulting in massive leaks before the official unveiling. This year the company plans to manufacture the forthcoming Google Pixel 5 in Vietnam entirely. What started off as a precautionary step against the Sino-American trade war, just got a major priority boost due to the sudden Coronavirus outbreak.
According to Nikkei Asian Review, two well-placed sources within the industry have individually confirmed that Apple will manufacture the upcoming Google Pixel 4a and the Pixel 5 entirely out of Vietnam. This does not come as a surprise since Apple invested in one of its partner’s manufacturing units last year, prepping it for Pixel production. Although, the process was initiated due to the US putting a ban on direct trade relations with China. The gamble seems to have paid off this year due to the COVID-19 Coronavirus outbreak halting public life in China.
Although the coronavirus outbreak might still affect Pixel production as China faces a logistical barrier. Rumors suggest Google is contemplating the idea of moving base for some of its critical components that are still being manufactured in China. Google is not entirely dependent on China in terms of smartphone production, which is a luxury Apple cannot afford. Reports suggest that while Google sold around 7 million units last year, Apple sells over 200 million units manufactured at its Chinese plants. Hence, relocating to a different country is not as much of a headache as you would imagine.
Google’s projected timeframe for Pixel production at its Vietnamese facility is by April for the 4a and the second half of 2020 for the Pixel 5. The timeframe makes sense as Google’s usual calendar pins the Pixel 4a’s launch at mid-May. The delay in parts shipment from China might still hamper Google’s plans. According to an IDC spokesperson, “Even if production is moved outside China, critical component suppliers are still based in the country. Shipping out parts inevitably takes time, as the supply chain ecosystem takes time to rebuild”.
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