A recent report talks about how Google might shift its Pixel production from China to Vietnam. With the ongoing trade war and tariffs imposed upon Chinese (and made in China) products, including some electronics, Google apparently wants to keep the price of its Pixel phones as low as possible.

The report mentions how Google and an unnamed partner have already started working on adapting an old Nokia factory in the northern Vietnamese province of Bac Ninh to be able to manufacture Pixel phones. Unnamed sources claim that some of the Pixel 3a production will already be shifted to the Vietnam plant by the end of this year.

Google are likely to keep some activities inside China. The U.S. company knows that if it is going to be serious about making hardware, it could never give up the massive Chinese market. However, they also understand that, due to rising costs and the macro-environment, they need to have production outside China for the long term in order to support their hardware manufacturing — source

“Any potential capacity shifting for [Google] would be easier than Apple”, said smartphone analyst Mia Huang, which has more than 90% of its hardware manufactured in the country.