The report says Google wants to relocate some of its crucial consumer electronics manufacturing outside of China due to the country’s Covid-19 lockdowns. GOOGL stock price remains bullish this year despite being affected the bear market.

Google (NASDAQ:GOOG) (NASDAQ:GOOGL)

As the company battles the effects of the pandemic, Google (NASDAQ:GOOG) (NASDAQ:GOOGL) is reportedly trying to shift a sizable portion of the production of its Pixel smartphones from China to India. In addition, tensions with the United States are rising as a result of China’s COVID-19 lockdowns, which have disrupted supply chains and industrial plans.

According to the report, Google has requested bids for the production of between 500,000 and 1 million Pixel smartphones in India, which represents between 10 and 20 percent of the expected annual production. In contrast, the whole run of earlier generations was made in China by Google.

Apple and Google will both be releasing their newest lines of smartphones in the coming weeks, competing to set them apart from older versions. However,10 percent of the biggest changes on the phones not built in China will go virtually unnoticed by users.

Will Uncertainty Affect Google Stock?

The change is a response to growing worries about the geopolitical sensitivities and supply chain disruptions brought on by pandemics that have implicated China in recent years. China has long served as the world’s primary producer of high-tech devices due to its unmatched ability to attract vast numbers of highly qualified people and its ability to keep up with demand for the newest gadgets.

The trade battle under Trump, with its tit-for-tat tariffs, and China’s saber-rattling following Speaker Nancy Pelosi’s visit to Taiwan last month have both contributed to American companies’ perception that there is more danger in those areas. They worry that having a big portion of their supply chain based in China may cause them to become involved in that country’s growing Taiwan issue with the US.

According to official media, Foxconn, Apple’s biggest contract maker, recently agreed to spend $300 million to expand in northern Vietnam with a new factory that will create 30,000 jobs. In addition to the $1.5 billion that Foxconn reportedly already invested in Vietnam, the most recent expenditure was made.

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