Google Confirms Pixel 11 Price Hikes Amid 'Severe' RAM Crisis
Surging memory costs force dynamic pricing adjustments as AI demand diverts chip production from consumer devices.
Google has confirmed that its upcoming Pixel 11 series will carry higher price tags, citing a severe supplier-driven RAM crisis reshaping smartphone economics across the industry.
Shakil Barkat, Google's VP of Devices and Services, told reporters there has "never been an increase in memory prices like the world's going through right now." He confirmed that "adjustments to Pixel pricing are coming and will be rolled out dynamically to match supply realities."
Memory Costs Surge Sixfold
Data from Morgan Stanley shows the scale of the disruption: RAM prices have jumped from approximately $2.80 per gigabyte in 2025 to $12 per gigabyte in 2026, a roughly sixfold increase. Memory components now account for more than 30% of the bill of materials for some smartphones, according to research firm CCS Insight.
The Pixel 11 and Pixel 11 Pro are rumored to see a $100 price increase, though Google plans to partially offset this by doubling base storage to 256 GB. Unconfirmed reports suggest the entry-level Pixel 11 could launch at $899, up from the Pixel 10's $799 starting price.
Leaks indicate the entry Pixel 11 Pro may see RAM reduced from 16 GB to 12 GB, though Google has not confirmed this.
Android Optimization Push
In response, Google is launching a dedicated effort to make Android more RAM-efficient, aiming to reduce hardware requirements and partially offset component costs. The initiative underscores how software optimization has become critical to maintaining device affordability amid supply constraints.
The price pressures stem from AI infrastructure demand diverting DRAM and NAND production away from consumer electronics toward higher-margin AI servers. CCS Insight projects global smartphone shipments will decline 15% in 2026 as a result.
Barkat indicated that existing "in-market" Pixel devices could eventually see pricing adjustments, though no specific models or timing were disclosed.
August Launch Expected
The Pixel 11 series is expected to be unveiled at Google's Made by Google event on August 12, 2026. The pricing shifts represent a broader industry inflection point where AI-driven supply chain pressures are forcing manufacturers to choose between raising prices or reducing hardware specifications.
Google's dual approach of absorbing some costs through storage upgrades while engineering software efficiency gains highlights the severity of the component shortage and the limited options available to device makers navigating the crisis.