Google unveiled its Pixel 11 lineup on Wednesday with Gemini Intelligence built into the center of the devices, weeks before Apple is expected to launch a rebuilt Siri running on Google's AI models. Devices chief Rick Osterloh told CNBC that Pixel and iPhone are taking different paths despite sharing the same AI foundation, and said an industrywide memory shortage will force Google to raise device prices.
Google's new phones put Gemini Intelligence at the center of the hardware pitch, not as an add-on to it. The launch puts Google in the unusual position of competing directly with one of its biggest AI customers, since Apple is rebuilding Siri around the same Gemini models.
Osterloh separates Pixel from iPhone
Rick Osterloh, Google's devices chief, told CNBC that Pixel and iPhone are heading in different directions even as both lean on Gemini. According to CNBC: "I think obviously Pixel and iPhone are going in very different directions." He pointed to scam detection, Rambler voice transcription and deeper Gemini integration across Android as capabilities unique to Google's devices.
The new lineup includes the Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL and Pixel 11 Pro Fold, each built around Gemini Intelligence — AI features designed to understand what a user is doing on the phone and act across different apps. Gemini Intelligence can pull information from messages, calendars and maps, then suggest or carry out next steps such as checking availability or starting a restaurant reservation.
AI's role in upgrades is still small but growing
Osterloh acknowledged that AI is not yet the top reason people upgrade their phones, though he said it has climbed higher among consumers in recent years. Counterpoint Research ranks AI around sixth or seventh among reasons consumers upgrade a smartphone, but says it has climbed one to two spots in recent surveys as Gemini and Apple Intelligence became more capable.
He sees Gemini's importance growing well beyond that. Osterloh said Gemini could someday become the primary way people use their phones, laptops and other devices.
A memory shortage is pushing prices higher
Google is also facing an industrywide shortage of RAM and flash memory that is pushing hardware costs up. Osterloh said the squeeze means Google will need to raise its own device prices, like other industry players.
Source: CNBC
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