Google Steps Up Hardware Game with Pricier Pixel 11 Lineup

Alphabet's Google has raised the stakes in its hardware battle with Apple by unveiling a pricier Pixel 11 lineup. The base model starts at $899, up from $799 for last year's base model, while the Pixel 11 Pro and Pro XL start at $1,099 and $1,299 respectively. The phones run Google's new Tensor G6 processor and latest Gemini Nano model, offering 50% more TPU compute and processing AI workloads up to 3.5 times faster.

The company is using hardware to seed subscriptions by including six months of Google AI Pro with the purchase of Pixel devices. This normally costs $19.99 per month and includes higher Gemini usage and cloud storage. The move aims to pull more users into its paid AI ecosystem and make Gemini a hardware differentiator.

The broader Platforms & Devices business is growing, with revenue rising 15% year over year to $12.9 billion in Q2. However, the risk remains that higher memory costs pressure margins while Apple retains premium-smartphone loyalty.