Google has officially confirmed price increases for its next-generation smartphone 'Pixel 11' series.

The price hike is attributed to sharply rising memory semiconductor costs due to the proliferation of AI data centers, which has significantly increased smartphone manufacturing costs. Industry analysts note that a structural change is underway where expanded AI infrastructure investment is driving up prices for consumer IT devices.

According to HNGN on the 27th (local time), Shaquille Barakat, Vice President of Google's Device and Services division, stated, "We have previously absorbed the cost burden from supply chain fluctuations on our own, but the market environment has fundamentally changed," indicating the price increase was unavoidable.

▲ Explosive AI Memory Demand…RAM Prices Surge Sixfold

Google cited surging memory prices as the primary cause of the price increase.

According to Morgan Stanley analysis, RAM prices per 1GB rose from $2.80 in 2025 to $12 this year, nearly a sixfold increase.

This is attributed to memory manufacturers expanding production of high-bandwidth memory (HBM) used in AI data centers, reducing memory supply for general smartphones.

Based on flagship smartphones with 16GB RAM, memory costs are estimated to have increased significantly from approximately $45 to around $192.

Google explained that it is no longer feasible to absorb such cost increases independently.

▲ Price Increases Across All Pixel 11 Products…No Exceptions for Budget Models

Google announced plans to adjust prices across its entire Pixel product lineup, including not only the Pixel 11 series but also Pixel Watch and budget-tier models.

The company stated it is reviewing flexible pricing methods aligned with current supply conditions, and confirmed that the budget model Pixel 10a will be subject to price increases.

Official pricing is scheduled to be announced at the 'Made by Google' event in New York on the 12th of next month.

▲ Base Model Expected to Increase by $100

While official pricing has not been announced, the distribution and related industries expect substantial price increases.

According to leaked information, the base Pixel 11 may start at $899, $100 higher than the previous Pixel 10's $799.

Instead, the existing 128GB storage model will be discontinued, with the 256GB model becoming the standard specification.

Some reports suggest the base Pixel 11's memory may be reduced to 12GB instead of the competitive 16GB, interpreted as a strategy to partially ease the burden of rising component costs.

The Pixel 11 Pro and Pro XL are also expected to see around $100 price increases without expanded storage.

Google Logo (Photo : [EPA/Yonhapnews])

▲ Android Memory Optimization Initiative

To address hardware price increases, Google plans to pursue software optimization.

The company announced it is undertaking a dedicated project to reduce memory usage across the Android operating system and app ecosystem.

The goal is to enable future smartphones to deliver performance and user experience comparable to today's standards with less memory, the company explained.

The industry believes strategies to reduce cost burdens through software optimization instead of hardware performance competition will gradually expand.

▲ Spreading Across Smartphone Industry Including Samsung Electronics

Analysis suggests that price increases due to rising memory costs are not limited to Google alone.

Samsung Electronics recently raised prices across all Galaxy Z8 foldable series compared to previous models, and multiple manufacturers including gaming smartphone company RedMagic cited rising RAM prices as a primary cause of price increases.

As memory cost burdens grow across the industry, smartphone price increases are becoming a new trend.

With the center of production infrastructure shifting toward AI, consumer-perceived price pressures are likely to persist in the near term.

Whether Google's software optimization efforts can effectively defend against hardware cost increases, or whether AI-driven memory shortages will establish price hikes as a new norm for IT devices, remains to be seen following the market response after the official announcement in August.