Google is moving the Pixels in smartphone production to Vietnam: Nikkei

FILE PHOTO: People trying to get out of a Google Pixel 2-line telephones during a launch event in San Francisco, California, USA-October 4, 2017. REUTERS/Stephen Lam

(Reuters) – Alphabet, Inc. ‘ s (GOOGL.D) Google + is the shift of the Pixels in smartphone production to Vietnam from China as of this year, as it builds up to a budget of supply chain in Asia, the Nikkei business daily reported on Wednesday.

The move comes as labour costs rise in China, along with the added pressure of increasing fares as a result of the current Sino-US trade tensions.

The U.S. internet giant’s plan to move most of the Us-bound hardware from China, including that of the Pixel-based phones, and a smart speaker to the Google Home page, Nikkei said.

The company plans to ship 8 million to 10 million smartphones this year, double that of a year ago, and the creation of the Vietnam, is an important part of Google’s drive for growth in the smartphone market, the newspaper added.

Google + will be the shifting of part of the production of the Pixel-for-Pixel 3A and a phone to get to Vietnam before the end of this year, the Nikkei reported, citing sources.

For her, the smart speaker is a part of the production will probably move to Thailand, but the company is in the development of a new product and the initial production of hardware in the line-up, it will still be in China, the newspaper said.

Google did not immediately respond to a request for comment on the matter, it is outside of regular business hours.

Reporting by Rishika Chatterjee in Bengaluru; editing by Gopakumar Warrier

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