Google has told suppliers it plans to move all production of Pixel smartphones, smartwatches and wireless earbuds out of China starting in 2027, after making progress developing and producing high-end Pixel phones in Vietnam this year.
The company also aims to increase Pixel phone shipments by 8% to 10% in 2026 from roughly 12 million units last year. It has also been pooling memory-chip demand from its cloud and smartphone businesses in negotiations with Micron Technology, Samsung Electronics and SK hynix to strengthen its purchasing leverage, Nikkei Asia reported, citing people with direct knowledge of the matter and supply-chain sources.
If carried out, the production shift would make Google the second global smartphone brand after Samsung to move handset manufacturing out of China. The move would accelerate a diversification effort already under way across Vietnam and India as Google pushes for Pixel growth despite a worsening memory shortage that is forcing much of the smartphone industry to cut volumes or raise prices.
Source: Counterpoint Research; compiled by DIGITIMES Asia, August 2026
Vietnam and India take bigger roles
Vietnam offers Google an established smartphone manufacturing ecosystem built over more than a decade by Samsung and its suppliers.
Samsung's handset plants in Bac Ninh and Thai Nguyen had produced a cumulative 2 billion phones by the end of June 2025, while the South Korean company had invested US$23.2 billion in Vietnam through 2024. Samsung Vietnam also employed about 90,000 people, underscoring the scale of the electronics manufacturing base available to other global device makers.
India has emerged as Google's other major production base. Google announced in 2023 that it would manufacture Pixel smartphones locally, beginning with the Pixel 8 and working with international and domestic manufacturing partners. The first Made-in-India Pixel 8 devices began rolling off production lines in August 2024.
Dixon Technologies is among the manufacturers assembling Pixel smartphones in India. The expansion comes as Google and other global electronics companies broaden their supply chains outside China.
Diversification, however, does not remove the underlying supply-chain risks. Alphabet's 2025 annual report says the company relies on contract manufacturers to build or assemble both its devices and the servers and networking equipment used in its technical infrastructure.
Alphabet also warns that shortages, price increases and longer lead times can result from component availability, manufacturing capacity, tariffs, export controls, trade disputes and geopolitical tensions. Some components used in its devices and infrastructure are available from only one or a limited number of suppliers.
Memory crunch tests Pixel growth
Google is expanding Pixel production into a smartphone market increasingly constrained by memory costs.
Global smartphone shipments fell 11% year over year in the second quarter of 2026, reaching their lowest second-quarter level since 2013 as the DRAM and NAND shortage intensified, according to Counterpoint Research. Memory suppliers have continued prioritizing AI data center demand over consumer electronics, putting particular pressure on lower-priced smartphones.
Google was one of the market's exceptions. Pixel shipments rose 16% year over year in the quarter, driven by the Pixel 10 and Pixel 10a in mature markets. Xiaomi, Oppo and Vivo, meanwhile, each recorded double-digit declines as their greater exposure to memory-sensitive entry and midrange segments weighed on shipments.
Pooling memory demand from smartphones and cloud infrastructure could give Google greater purchasing leverage as memory becomes more expensive and harder to secure. Alphabet's annual report confirms that its device and technical-infrastructure operations both rely on external manufacturers and directly sourced components, although it does not confirm the reported joint memory-purchasing strategy.
The Pixel 11 series opened for preorder on August 12. The Pixel 11 starts at US$899 with 256GB of storage, while the Pixel 10 launched at US$799 with 128GB.
Pixel becomes a gateway to Google's AI
Pixel is also taking on a broader role as Google seeks to put Gemini and other AI services directly in consumers' hands.
Alphabet says its device strategy is built around combining AI, software and hardware, and describes investment in products including Pixel phones and watches as a long-term effort.
That gives Google a reason to defend Pixel shipment growth even as the economics of smartphone production become more difficult. Unlike manufacturers heavily exposed to entry-level devices, Google can use Pixel as both a hardware business and a distribution point for its wider AI ecosystem.
The timing remains challenging. Counterpoint expects the global memory shortage to persist into 2027 and says a broader recovery in smartphone demand is unlikely until memory supply conditions improve substantially.
Article edited by Jerry Chen
