Memory Cost Pressure High! Google Pixel 11 New Models Increase by $100, Starting at 256GB, Featuring 'Gemini Intelligence'

Google unveiled the Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL, and Pixel 11 Pro Fold at its 'Made by Google' event on Wednesday (the 12th). The new models will officially launch next Thursday (the 20th) at prices of $899, $1,099, $1,299, and $1,899 respectively—each $100 higher than their previous-generation Pixel 10 counterparts. The price hike is primarily due to surging RAM and flash memory costs caused by AI data centers consuming DRAM/NAND production capacity. Rick Osterloh, Google's head of devices, stated bluntly that 'shortages in RAM and flash memory are driving up costs across the entire consumer electronics industry.'

To soften the impact of the price increase, Google has restructured its lineup: the Pixel 11 and Pixel 11 Pro have eliminated their 128GB versions, now starting at 256GB. While the 256GB variants of these two models remain unchanged in price, the Pixel 11 Pro XL’s equivalent configuration (12GB/256GB) has increased by $100. Additionally, the base RAM for Pro and Pro XL models has been reduced from 16GB to 12GB; users must upgrade to the 512GB or 1TB version to regain 16GB of RAM. The standard Pixel 11 starts at 12GB+256GB, features a 6.3-inch display, and is powered by the Tensor G6 and Titan M3 chips, offering up to 3.5x faster on-device AI task performance.

The new Pixel 11 series highlights 'Gemini Intelligence,' capable of handling multi-step tasks across more than 40 apps. The camera gains Magic Capture, while Pro models include six months of free Google AI Pro access, along with the HiLight RGB indicator light and Rambler dictation tool.

In fact, as early as June 25, another major U.S. smartphone manufacturer, Apple, raised prices on products including the MacBook Air ($200), MacBook Pro ($300), and iPad Pro ($200), citing 'unprecedented memory shortages caused by AI data center expansion.'

According to TrendForce data, in Q1 2024, contract prices for smartphone DRAM surged 88%–93% quarter-on-quarter, while NAND prices rose 33%–38%. In Q2, DRAM prices climbed another 58%–63%, and spot prices for DDR5 16GB modules have increased more than sixfold within the year. As a result, memory now accounts for 30%–40% of a smartphone’s bill of materials (BOM), up from the previous 10%–15%.

Osterloh positions AI as Pixel’s key differentiator against the iPhone, even predicting that 'AI will one day become the primary way people use their phones.' However, Counterpoint survey data shows that AI currently ranks only 6th or 7th among consumer reasons for upgrading phones, trailing behind screen, battery, and camera performance.

The sales performance of the $899 starting Pixel 11 after its launch next Thursday will directly answer whether 'Gemini is worth a $100 premium.'