Google is the latest company to consider routes other than China for its production needs. Google is expected to launch the new Pixel 7 series in the coming months, and reports suggest the company is considering moving its manufacturing base from China to Vietnam. The New York Times report suggests that the Pixel 7 series will be the first in the lineup to be assembled in the new region.
Google’s decision to look beyond China is hardly surprising. The likes of Apple have also considered such a move, exasperated by the need to reduce its dependence on one country for its production needs.
Over the past few years, China has faced multiple shutdowns, which has resulted in the closure of major manufacturing hubs in the region. The production shutdown has forced companies to revise their launch plans and shipping times. Add to that the simmering geopolitical tensions between the United States and China, which have cost giants like Huawei dearly in recent years.
And it seems that Google is also unwilling to take a risk with all of these factors in play and put all of its eggs in China’s basket now.
Microsoft and Amazon are the other big tech giants mentioned in the report, which have also moved production out of China and sought alternative hubs for their products. The report suggests that Amazon made its Fire TV Stick devices in Chennai, India, which were also previously made in China.
Vietnam and India seem to be the main beneficiaries of this transition, and China will have to rework its strategy, or risk losing more companies in the near future.
Google announced the Pixel 7 series during Google I/O 2022 earlier this year. The company has confirmed its launch this fall, which should end in October if we take previous launch times into the equation.
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