China has begun telling supply chain suppliers that it will begin moving the makers of Pixel phones, smartwatches and earphones out of China starting in 2027, according to a Nikkei Asia report. This is due to geopolitical factors such as the tension between China and the United States causing increased costs through tariffs.
Production operations will be moved to Vietnam and India as part of a supply chain diversification strategy. Google aims to increase the number of Pixel smartphone shipments by reducing its reliance on China.
The move follows a similar move by Apple last year. iPhones for the US market are manufactured entirely in India to avoid import tariffs while also receiving tax incentives through the Made in India initiative.
Production has previously been moved out of China to avoid disruptions such as those experienced during the pandemic. With the trade war between the US and China still in no sight, the move is now being driven by cost-cutting factors.
