Alphabet Inc's Google is planning to manufacture all its Pixel products outside China starting next year, with a full transition targeted for 2027. The company has informed suppliers that it will shift production of smartphones, watches, and wireless earbuds to reduce dependence on China, citing growing tensions between Washington and Beijing. Expanded production in India could benefit local electronics manufacturing services players, with Dixon Technologies among those cited as potential beneficiaries.

Google has been progressively expanding capacity in Vietnam and India. Sources told Nikkei Asia that the success of premium Pixel phone manufacturing in Vietnam reinforced the plan for a complete exit from Chinese production by 2027.

Supply chain diversification

Google could become the second major smartphone brand after Samsung Electronics Co to shift production out of China. The move is considered easier for Google than for Apple Inc due to Google's limited presence in the Chinese market.

Shipment growth amid cost pressures

Despite rising component costs, particularly for memory chips, Google expects Pixel smartphone shipments to rise 8% to 10% this year from roughly 12 million units last year. Soaring memory chip and component costs have squeezed the industry, leading competitors like Xiaomi, Oppo, and Vivo to cut forecasts.

To strengthen its negotiating position with Micron Technology Inc, Samsung, and SK Hynix Inc, Google is bundling memory chip orders for its cloud computing operations with those for its smartphones. This strategy aims to mitigate the impact of increased handset prices in major markets like the U.S. and China.

What the numbers show

Google's strategy relies on volume growth to offset margin pressure from component costs. With shipments expected to rise 8% to 10% from a base of roughly 12 million units, the company is leveraging its cloud computing scale to secure better pricing on memory chips. This bundling approach allows Google to remain more cautious about raising prices on existing models compared to rivals like Samsung and Motorola, helping its midrange Pixel lineup stay competitive. Counterpoint Research noted that Google's U.S. promotional strategy and attractive pricing for the Pixel 9a and 10a are supporting demand amid pressure in prepaid segments.

Google introduced Gemini 3.7 Flash with a defined introductory pricing structure for the remainder of the year. The new model is priced at $0.75 per million input tokens and $3.75 per million output tokens.

The availability of this pricing tier extends through the end of the year, providing a clear cost framework for developers and enterprises integrating the model into their workflows.

Pricing Structure

This pricing applies to the Gemini 3.7 Flash model specifically, distinguishing it from other variants in the Gemini family.