As Chinese-owned brand Motorola attempts to challenge Samsung, it faces another formidable obstacle in the affordable premium smartphone segment: Google.

Unlike Motorola, Google already has a foldable smartphone and a strong premium Pixel lineup on sale in Australia.

At CES, Google revealed plans to shift smartphone manufacturing out of China and into Vietnam.

This move comes as the Pixel brand continues to gain momentum.

Reports suggest that in 2025 Google achieved 105% year-on-year growth in the premium smartphone category.

While Apple still dominates overall market share—followed by Samsung—Google’s rise places added pressure on competitors such as Motorola.

Pixel devices are widely regarded as true premium Android smartphones, thanks to Google’s tight hardware-software integration and its leadership in AI features and computational photography.

In contrast, Motorola has long struggled with software support, earning criticism for slow and limited Android OS upgrades.

Pixel phones, by comparison, often receive up to seven years of OS and security updates, significantly enhancing long-term value.

See Motorola Android upgrade problems story here. 

In Australia, Motorola remains best known for mid-range and budget devices. Although the company is making a concerted push into higher-end categories, analysts argue it lacks the brand credibility enjoyed by Apple, Samsung, and Google. Recent CES launches—including a new Motorola Signature model that Australian journalists were notably denied access to—highlight Motorola’s ambitions in premium design and colour innovation. Despite this, the brand continues to trail Google and Samsung in global premium market share.

IDC data shows Pixel phones accounted for approximately 1.1% of global smartphone shipments in the second quarter, a figure largely driven by premium models. In Australia, Google’s Pixel 9 Pro Fold 5G with 256GB of storage retails for $2,297, underscoring its premium positioning. By contrast, Motorola continues to sell large volumes of entry-level devices, such as the $129 Moto G6.

According to Canalys, Google held around 3% of the U.S. smartphone market in 2025, while Motorola slightly edged ahead at 3.5%—a figure largely attributed to sales of sub-$300 devices rather than premium handsets.

Looking ahead, Google is expected to launch the Pixel 10a in February or March, aligning with new device launches from both Samsung and Motorola in the Australian market. The Pixel 10a is tipped to be available in four colours—Obsidian, Berry, Fog, and Lavender—with 128GB and 256GB storage options.

Google has stated it intends to expand market share across both premium and affordable segments. As part of this strategy, the company will increasingly develop and manufacture high-end Pixel, Pixel Pro, and Pixel Fold devices in Vietnam. This shift positions Google in more direct competition with Motorola.

Motorola, owned by Lenovo, is ultimately part-owned by China’s state-linked Academy of Sciences (CAS), which holds a 29% stake in Legend Holdings, Lenovo’s parent company. This ownership structure is seen as a constraint on Motorola’s ability to move smartphone or PC manufacturing out of China.

Meanwhile, Samsung continues to operate major smartphone manufacturing facilities in China, although several brands are increasingly sourcing components from Vietnam. Google plans to keep development of its lower-end Pixel A series in China for now, while transitioning premium production elsewhere.

These manufacturing shifts come amid growing uncertainty across the tech industry, driven in part by former U.S. President Donald Trump’s tariff policies, which have disrupted global supply chains since April last year. Apple has also accelerated efforts to expand production capacity in India and Vietnam, aiming to reduce reliance on China.

The scale of this transition is significant. Apple and Google alone are expected to deploy between 200 and 300 engineers to support operations at new supplier facilities. “The amount of investment is incredible,” said a source linked to an Apple supplier.

If both companies succeed in building high-end smartphones outside China, it would represent a major milestone in diversifying global manufacturing networks. Google already mass-produces premium smartphones in Vietnam and conducts some verification processes there, making a broader production shift achievable, according to sources familiar with the situation.

These developments coincide with Motorola’s plans to introduce a lower-cost Razr foldable and a new Signature premium smartphone. However, it remains unclear whether Motorola’s foldable devices will secure carrier support or even launch in Australia.