Google to move premium smartphone development outside China - media outlet

Google plans to start development and production of premium segment smartphones in Vietnam this year, Nikkei Asia reports, citing sources familiar with the situation. The company took a similar step following Apple. The iPhone maker, according to the publication, also plans to move its production from China to India - all for the sake of creating full-fledged supply chains outside China, Nikkei Asia points out.

Shares of Google's parent company, Alphabet, were up just over 1% on the premarket on Jan. 13.

According to Nikkei Asia, Google plans to move the key stage of the market launch of new devices - New Product Introduction (NPI) - for Pixel, Pixel Pro and Pixel Fold smartphones to Vietnam. Meanwhile, development of the more affordable Pixel A lineup will remain in China for the time being.

NPI is considered a critical stage in the launch of a new electronic device and includes the development, verification and finalization of manufacturing processes, Reuters noted. Google already manufactures flagship smartphones in Vietnam and is "doing some verification processes," the two Nikkei Asia interlocutors pointed out, noting that setting up the assembly of new smartphones from scratch in the country should then be feasible.

Google has not officially confirmed this information.

Despite years of attempts to diversify their supply chains, both Google and Apple are still conducting the key phase of new smartphone market introduction (NPI) in China. The reason is the high complexity and labor intensity of starting production from scratch in other countries where supply chains are less mature, Nikkei explains.

The moves come amid growing uncertainty in the technology industry due to US President Donald Trump's administration's tariff policies, which have caused major disruptions in global supply chains since April 2025. Against this backdrop, Apple has previously been aggressively ramping up production capacity in India and Vietnam, Nikkei wrote. If Google and Apple manage to establish smartphone development outside of China, it would be a major achievement in their efforts to move production out of the PRC, Nikkei noted, emphasizing that it would mean expanding their supply network and capabilities outside of China.

"The goal is to achieve functionality, compatibility and reliability suitable for mass production. If the NPI stage fails, it will mean there will be no new product this year. Fortunately, that hasn't happened so far," a source connected to one of Apple's suppliers told Nikkei, referring to the iPhone maker's strategy.

This article was AI-translated and verified by a human editor