Google focuses on AI instead of major hardware upgrades in new smartphones

Alphabet’s Google introduced its new Pixel 10 smartphones and gadgets at the annual “Made by Google” event in New York. Instead of emphasizing big hardware changes, the company focused on how artificial intelligence is being integrated into its ecosystem of products.

Google shifts spotlight from hardware to AI

Celebrities like Jimmy Fallon and the Jonas Brothers helped showcase real-world applications of Google’s AI features. The approach highlighted consumer appeal, while the actual hardware upgrades were relatively modest compared to past years.

“There has been a lot of hype about (AI in phones) and frankly a lot of broken promises too, but Gemini is the real deal,” said Rick Osterloh, Google’s senior vice president of devices and services.

Pixel 10 AI features

The Pixel 10 lineup introduces several AI-driven features. A new “coach” in the camera app assists users in taking better pictures, while an assistant can display relevant information without explicit prompts. For example, it can show a flight confirmation email when a user calls an airline.

Earlier AI tools, such as real-time language translation during calls, were also demonstrated. Despite these advanced functions, the physical design of the phones has stayed largely the same. A telephoto lens was added to the base model, aligning it with the higher-end versions.

Prices begin at $799 for the base unit and $1,799 for the foldable model, remaining steady despite tariff concerns earlier in the year.

“A lot of the stuff they showed today would probably run almost exactly the same way on last year’s hardware. Their point is it’s not about just the hardware anymore,” said Bob O’Donnell, chief analyst at Technalysis Research.

Google’s market challenges

Google continues to face challenges in expanding its Pixel market share. While Android powers more than 80% of smartphones worldwide, Pixel devices make up only a small portion of sales compared with Samsung and Xiaomi.

Analyst Carolina Milanesi noted, “Last year there was such a jump in the hardware, from a design and feature perspective. This feels more like a big push from a marketing perspective.”

Google smartphones spotlight AI with pixel 10 launch

In the second quarter, Google’s global smartphone market share rose slightly to 1.1% from 0.9% a year earlier, according to IDC. In the United States, Pixel’s share dipped to 4.3% from 4.5%. The company’s limited geographical focus, mainly in the US, Japan, and UK, has restricted growth.

On Wednesday, Google announced plans to expand sales to Mexico, a step analysts believe could open new opportunities. “I hope this is the start of expanding their channel presence. The opportunity of the addressable market they can reach is still what is kind of holding Google back,” said Milanesi.

What’s new in Pixel 10 and other devices

The Pixel 10, Pixel 10 Pro, and Pixel 10 Pro XL will be available later this month, with the Pixel 10 Pro Fold arriving in October. All models feature Google’s latest Tensor G5 processor and a new magnetic charging system called Pixelsnap, similar to Apple’s MagSafe. Accessories like Pixelsnap chargers, cases, and stands were also introduced.

In addition to smartphones, Google unveiled the Pixel Watch 4 and Pixel Buds 2a wireless earbuds. The Pixel Buds Pro 2 only received a new color option and software updates specific to Pixel devices.

Conclusion: AI as the main driver

Google’s Pixel 10 launch highlights a clear shift: AI is now the centerpiece of its product strategy. Hardware innovations are present but secondary. Whether this approach will help Google grow its market share remains to be seen, but the message is clear—Google wants its users to see AI as the future of smartphones.

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