Alphabet’s shares dip as Google introduces its Pixel 11 range with higher prices driven by increased memory costs, new AI features, and hardware enhancements, signalling a shift towards premium pricing amid ongoing supply chain challenges.
Alphabet shares slipped after Google introduced its Pixel 11 range and raised entry prices, a move driven in part by higher memory costs. The search company set the base Pixel 11 at $899, with the Pixel 11 Pro at $1,099 and the Pixel 11 Pro XL at $1,299, all starting with 256GB of storage and due on sale on August 20. Reports ahead of the launch had already indicated that Google was dropping the 128GB tier and pushing the starting configuration to 256GB.
Google said the new phones run on its Tensor G6 chip and use Gemini Nano for on-device artificial intelligence, meaning some AI tasks are handled locally rather than in the cloud. The company said the processor is designed to improve AI speed while using less power, with broader gains in browsing and app performance. Industry leaks published before the event suggested the lineup would include standard, Pro, Pro XL and Fold models, with higher storage options extending to 1TB on premium versions.
The hardware update also brings camera and display changes. Google said Pro models include improved telephoto capability, while the top-end handsets reach 3,600 nits of brightness, add faster charging and use tougher materials for better scratch resistance. Pre-launch reports from The Times and T3 had signalled that Google would keep the overall design largely familiar while using the Pixel 11 cycle to emphasise performance and component upgrades.
The higher pricing reflects wider pressure across the smartphone supply chain. Google linked the increase to more expensive memory, with semiconductor supply still tight as demand from AI data centres competes for capacity. That dynamic has become a growing cost issue for hardware makers, especially for premium phones that rely on larger memory configurations.
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