Google to stop making Pixel devices in China, report claims — India and Vietnam prime candidates for manufacturing shift owing to Beijing-Washington tensions

Google plans to cease manufacturing Pixel smartphones, smartwatches, and wireless earbuds in China starting in 2027, reports Nikkei. The tech giant's decision comes as tensions between China and the U.S. escalate, prompting a shift in supply chain diversification. Major EMS and ODM partners, including Compal, Foxconn, and Pegatron, have been expanding manufacturing capacity in India and Vietnam for several years.

Google has already started producing some high-end Pixel smartphones in Vietnam this year and found the results satisfactory. The company's confidence in shifting the entire Pixel lineup out of China by 2027 stems from the complexity of building premium handsets compared to smartwatches or wireless earbuds. Vietnam is an attractive option for Google due to Samsung's existing smartphone manufacturing ecosystem in the country.

Google expects Pixel shipments to grow by 8%-10% from around 12 million units last year, a significantly lower figure compared to iPhone sales. Despite rising component costs, Google is focused on maintaining unit shipment growth. The strategy for Pixel this year is to relocate production to India and Vietnam to reduce reliance on China, enhance supply-chain resilience, and lower over-reliance on a single country.

Consumer electronics brands like Apple and Google are shifting production away from China due to escalating geopolitical tensions, punitive tariffs, export controls, and the risk of disruptions.