Pixel 11 Launch Sends Alphabet Stock Reeling with $100 Price Hike

Alphabet Inc.'s (GOOGL) stock took a hit on Wednesday following the launch of its Pixel 11 smartphone series. The entry-level model now costs $900, a $100 increase from last year's price.

The real significance of the launch lies in the paid AI access offered to Pro buyers. Pixel 11 Pro and Pro XL customers will receive a six-month subscription to Google AI Pro at no additional cost.

According to Forrester senior analyst Andrew Cornwall, 'Google continues to position AI software as the primary upgrade incentive.' The latest tools feature improvements such as video photo extraction, advanced stabilization, and enhanced speech-to-text capabilities.

The $100 price hike is not limited to the entry-level model. All Pixel 11 models now carry a higher price tag, with storage capacity expanded to 256 gigabytes.