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- Google devices chief Rick Osterloh tells CNBC Pixel and iPhone are going in “very different directions” as Google leans into Gemini features it says are unique to Android.
- Osterloh said Gemini could eventually become the primary way people use their phones, laptops and other devices.
- He also said the memory shortage is forcing consumer electronics prices higher and that Google expects it will need to raise prices further.
Google Pixel 11 LaunchSource: Google
Alphabet on Wednesday unveiled its new Pixel 11 smartphone lineup, putting its most agentic version of Gemini yet at the center of the devices just weeks before Apple is expected to roll out a rebuilt Siri powered by Google’s AI models.
The new lineup includes the Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL and Pixel 11 Pro Fold. But Google’s hardware pitch leans just as heavily on Gemini Intelligence — a suite of artificial intelligence features designed to understand what a user is doing on the phone and take action across different apps.
For example, Gemini Intelligence can connect information from messages, calendars, maps and other Google services, then suggest or carry out next steps, such as checking availability, comparing travel options, or beginning a restaurant reservation. Google is also expanding AI features that work directly inside the phone’s operating system, rather than requiring users to open a standalone chatbot.
Rick Osterloh, Google’s devices chief, told CNBC in an exclusive interview that the company believes AI could fundamentally change how people interact with smartphones.
“For the last 10 to 15 years, not a lot has changed in how you use laptops and mobile phones,” Osterloh said. “But we think that’s about to change dramatically.”
Google Pixel 11 LaunchSource: Google
He described Gemini Intelligence as “a totally new way to interact with a computer,” using agentic capabilities that allow users “not only to find out information but to get things done.”
The launch also puts Google in the unusual position of competing directly with one of its biggest AI customers.
Apple is rebuilding Siri around Google’s Gemini models, with many of the same broad goals Google is now showcasing on Pixel: understanding personal information, recognizing what is happening on screen and taking actions across apps.
Asked whether Pixel gives Google an early chance to showcase that model before it reaches iPhone users, Osterloh pushed back on the idea that the two experiences will be the same.
“I think obviously Pixel and iPhone are going in very different directions,” Osterloh said. “It’s always been at the forefront of Pixel’s product strategy to lead with new technologies, and in particular with Gemini and AI.”
Osterloh pointed to features like scam detection, its Rambler voice transcription technology and deeper integration of Gemini across Android as capabilities that distinguish Google’s experience.
“All these things are unique to Android and Gemini Intelligence,” he said. “So I think these are things you’re going to want to get a Pixel or an Android phone to try to experience.”
The question for both companies is whether increasingly capable AI is enough to convince consumers to buy new phones.
Osterloh acknowledged that AI is not yet the top reason people upgrade their devices, though he said it has moved sharply higher among consumers in recent years.
Counterpoint Research said AI currently ranks around sixth or seventh among consumers’ reasons for upgrading a smartphone, but has climbed one to two spots in its latest surveys as Gemini and Apple Intelligence have become more capable.
Tarun Pathak, research director at Counterpoint, said compelling use cases and greater consumer awareness will be critical to turning that growing interest into actual upgrades. He expects Apple Intelligence to be a catalyst for iPhone upgrades, noting that Apple has more generative AI-capable smartphones already in consumers’ hands than any other brand.
Google Pixel 11 LaunchSource: Google
Google ultimately sees Gemini becoming far more central to how people use their devices.
“We think that it’s going to grow in importance and perhaps someday become the primary way that people use their phones, their laptops and other devices,” Osterloh said.
Google is also navigating another industrywide pressure as a shortage of memory components pushes hardware costs higher.
“There’s quite clearly a shortage of memory, both RAM memory and flash memory,” Osterloh told CNBC.
He said the squeeze is forcing consumer electronics companies to raise prices and indicated Google expects additional pressure on its own devices.
“What’s happening in the near term, I think, is everyone’s needing to raise their prices,” Osterloh said. “We’ve also discussed that we will need to raise ours, like all the other industry players.”
Google’s new Pixel generation gives the company a first chance to test whether a more autonomous AI assistant can meaningfully change smartphone behavior.
Apple will soon make a similar bet with a far larger installed base. According to Counterpoint, it will be the largest base of generative AI-capable smartphones already in consumers’ hands.
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