Google is reportedly planning to exit China entirely by 2027, shifting all Pixel product manufacturing to India and Vietnam. The move would encompass the entire Pixel portfolio, including phones, watches, and earbuds. According to Nikkei Asia, Google gained confidence in this transition after successfully producing the Pixel 11 in Vietnam. Since Pixel devices are not sold in China, the company faces no significant barriers to relocating production.

Alongside the manufacturing shift, Google aims to boost Pixel shipments to approximately 13 million units in 2026, representing an 8% to 10% increase from the roughly 12 million units shipped in 2025. This growth target aligns with the company's broader strategy to strengthen its presence in the global smartphone market.

Despite these ambitions, Google continues to face challenges in competing with dominant players like Apple, Samsung, and Motorola. In the U.S. market, Google ranked fourth in Q1 2026, shipping 0.8 million units and capturing a 3% market share. Globally, the company did not rank among the top five smartphone manufacturers. Market conditions remain tough, with declining sales attributed to rising component costs.