Google revealed new smartphones with an AI focus. Do they threaten the iPhone?

Google unveiled a new line of Pixel smartphones with a focus on artificial intelligence features. The devices were released in several versions with prices ranging from $799 to $1799, and for Pro models there is a free one-year subscription to Google's AI services. The presentation took place a few weeks before the release of the new iPhones, and experts say that although the Pixel's market share is still Ma, the advanced AI capabilities give Google a chance to strengthen its position against the backdrop of Apple's lagging behind.

Google on Wednesday unveiled a new lineup of Pixel 10 smartphones with a focus on artificial intelligence. Key to the new devices is the Gemini AI voice assistant, CNBC reports. A number of new AI-powered features will be available for Pixel 10 buyers: Magic Cue, which anticipates user actions and, for example, immediately displays flight details when calling an airline; Gemini Live, which allows for real-time voice chat with analysis of what's being displayed on the screen; and Camera Coach, which will prompt the scene at the time of taking a photo, advise on angle and light settings, and combine similar group shots into one where everyone is equally well turned out.

The Pixel 10 lineup has come in several versions: the base smartphone starts at $799 in the US, the Pixel 10 Pro model costs from $999, and the Pro XL variant with a larger screen and 256GB of storage starts at $1199. The updated Pixel 10 Pro Fold starts at $1799. Prices for the Pixel 10 and both Pro models are in line with the iPhone 16 introduced last year.

For buyers of the Pro versions of Google's smartphones, there's a bonus - a one-year subscription to the Google AI Pro plan (typically $19 per month), which includes advanced Gemini features, priority access to NotebookLM (an AI assistant for documents and notes) and Veo 3 (an AI-driven video generation and editing platform), and additional cloud storage.

Google is betting that the new smartphones will be a channel to promote its AI services and subscriptions, CNBC noted. Google's presentation comes weeks before the release of the new iPhones, expected in September. The Pixel's market share remains small and well behind rivals like Apple and Samsung, but these smartphones allow the company to directly bring the latest AI features to Android and showcase the capabilities of its ecosystem, the channel said.

Critics note that Google's Gemini models look more advanced than the Apple Intelligence AI features in the iPhone, CNBC emphasizes. The fact that Apple has postponed a major update of its Siri voice assistant until 2026 opens a chance for Google to strengthen its position among users passionate about technology, the channel believes. In a Pixel 10 commercial, Google ironized Apple's delays. "You buy a new phone for a feature that's 'coming soon,' but that 'soon' has been a year in the making...You could change your definition of 'soon' or just change your smartphone," the commercial read.

Experts do not rule out that Google will be able to offer an AI feature that will be so in demand that it will start to take away the audience from Apple, emphasizes CNBC But this is not happening now. People are not yet demanding AI features in their phones, said Canalys analyst Sheng Wing Chow. Google is betting that will change soon: the race is on and Apple now has a lot of catching up to do, The Wall Street Journal noted.

In trading on August 20, shares of Alphabet (the holding company of Google) initially sagged by 2.5%, but then reduced the fall and ended the day down 1.12%. Since the beginning of the year, the company's market value has gone into the plus side by almost 5.3%. By comparison, Apple's shares for the same period, on the contrary, fell by 9.8%.

Alphabet shares were rated by 70 analysts and 57 of them advise to buy the stock (Buy and Overweight ratings). The remaining 13 recommend to hold (Hold). None of them advise to sell. The average target price of the securities is $220, which suggests a potential upside of almost 9% from the closing level of August 19.

This article was AI-translated and verified by a human editor