Google to Exit China Production for Pixel Devices by 2027

Google intends to complete the transfer of all production capacity for Pixel devices out of China in the near future. According to new reports, the company’s strategy involves abandoning Chinese facilities by 2027. This large-scale relocation covers not only the smartphone lineup but also smartwatches and headphones.

Why Google Is Leaving China

Over the past few years, Google has been actively expanding its manufacturing capabilities in Vietnam and India, aiming to minimize its reliance on Chinese factories. However, a significant portion of Pixel production currently remains in the PRC. The company’s confidence in executing this plan is based on the successful experience of assembling Pixel smartphones in Vietnam this year. Since the development and production of smartphones are technically more complex than wearable electronics (watches and headphones), the success with phones has allowed the company to commit to a full transition to new production locations.

Brand Status in the Market

If these plans materialize, Google will become the second major global phone manufacturer to move away from Chinese assembly, following Samsung. The task is simplified by the fact that the company does not sell its smartphones directly in China. Regarding production targets, Google plans to increase Pixel smartphone shipments by 8-10% this year compared to the 12 million units produced last year.

Economic Factors and Component Strategy

To optimize costs and combat price pressure in the memory chip market, Google is taking an unconventional approach: the company is consolidating memory orders for its cloud computing divisions with those for its smartphones. Negotiations for this are currently underway with the leading “trio” of manufacturers: Samsung, SK Hynix, and Micron.

According to expert estimates from an unnamed executive at a component supplier for Google and Xiaomi, the current strategy could allow Google to increase its market share in the US, Japan, and Europe, provided that Apple is forced to raise retail prices for the iPhone lineup in the future.