Google is planning to move the production of its Pixel smartphones from China to Vietnam. The search giant is reportedly planning to move production starting this year. The move will come amidst the ongoing trade war between the US and China. Apple is also reportedly looking at moving production from China to either Vietnam or India. Google is said to be looking to avoid higher Chinese labor costs and the tariffs resulting from the trade war between the US and China.

According to Nikkei Asia Review, the US tech giant has started to convert an old Nokia factory in the northern Vietnamese province of Bac Ninh. The factory will be used to handle production of Pixel phones, the publication reported on Wednesday. As per the report, the company would move production of most of its American-bound hardware outside of China. This will include the Pixel phones and its Google Nest Hub smart speakers.

Google is expected to launch the next generation Pixel smartphones during the early weeks of October. The leaks so far hint at Pixel 4 and Pixel 4 XL being two refreshed models replacing the Pixel 3 and Pixel 3 XL. The company sees moving the production to Vietnam will help grow in the smartphone market. During the second quarter, Google reported growth in smartphone shipments on the back of demand for Pixel 3a series.

The search giant aims to ship around 8 to 10 million smartphones this year. It is not clear whether these numbers are based on Pixel 3a shipments alone or include the Pixel 4 series as well. Google is trying to be ahead of the rumor mill and has already teased image of Pixel 4. It will feature a dual rear camera setup placed in a square camera module. The search giant has also confirmed inclusion of 3D facial recognition system and use of Project Soli sensor for gesture-based input interface.

(Written with IANS inputs)