Google Unveils New Phones and Other Gadgets Powered by AI

A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)
A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)
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Google Unveils New Phones and Other Gadgets Powered by AI

A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)
A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)

Alphabet’s Google on Tuesday unveiled a lineup of new Pixel smartphones with deeper integrations of its artificial intelligence technology as it races to incorporate AI into its hardware.

The event at Alphabet’s headquarters in Mountain View, California, bucks a tradition Google has maintained with every iteration of Pixel - its flagship smartphone launched in October 2016 - to announce the new version in autumn.

The earlier timing is Google’s latest bid to keep up with rivals in injecting AI features into its consumer-facing products and comes ahead of Apple's planned launch of a new iPhone in September. In June, Apple announced that devices including its latest version of iPhones would get upgrades that include "Apple Intelligence," a slew of generative AI-powered features within native applications, and an integration with ChatGPT, the chatbot developed by Microsoft-backed OpenAI.

"We've seen a lot of AI announcements in a short burst of time as of late. I don't think you want to sit on it too long if you're Google," said IDC analyst Linn Huang.

New AI integrations announced on Tuesday include a Pixel-only feature that lets users search for information stored in screenshots. Android users can also now pull up Gemini, Google’s chatbot, as an overlay on top of another app to answer questions or generate content.

Pixel 9, the base 6.3-inch display model, will retail at a starting price of $799, which is $100 more than the previous model. This and the 6.8-inch Pixel 9 Pro XL will begin shipping later in August, a company spokesperson said. The Pixel 9 Pro, which comes with added features like a better camera, and the foldable Pixel 9 Pro Fold will ship in September.

The new gadgets are available to preorder on Tuesday.

Google holds less than 1% market share in global smartphone shipments as of the second quarter of 2024, according to IDC. It trails far behind Samsung’s market share of 18.9% and Apple's market share of 15.8%, according to IDC. That is in part because Google has entered fewer markets and is focused on higher-end price segments.

In the United States, Google's 4.5% share makes it the fourth-biggest smartphone maker, according to IDC.

But the Pixel line has also enabled Google to show off advances and spur the developer ecosystem around its Android operating system, which is used by device manufacturers like Samsung. Android represents one of several frontlines where Google is battling competitors to embed AI in ways that consumers will use. In May, it debuted a swath of upgrades to core products like its search engine.

The company's engineers redesigned the Pixel's exterior and included camera upgrades as well as Google's new Tensor G4 chip.

Google announced new versions of its smartwatch, the Pixel Watch 3, and Pixel Buds Pro 2 wireless earbuds on Tuesday as well.



Microsoft Faces UK Lawsuit over Cloud Computing Licenses

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
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Microsoft Faces UK Lawsuit over Cloud Computing Licenses

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft faces legal action in Britain over a claim that thousands of businesses using cloud computing services provided by Amazon, Google and Alibaba could be paying higher license fees to use Windows Server software.

Competition lawyer Maria Luisa Stasi filed a case at the Competition Appeal Tribunal on Tuesday, claiming that British businesses and organizations could collectively be owed more than 1 billion pounds ($1.27 billion) in compensation.

"Put simply, Microsoft is punishing UK businesses and organizations for using Google, Amazon and Alibaba for cloud computing by forcing them to pay more money for Windows Server," she said.

"By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector."

Separately, Britain's competition regulator is investigating cloud computing, a market dominated by Amazon's AWS, Microsoft's Azure and, to a lesser extent, Google Cloud Platform.

Microsoft's licensing practices, for example for its Windows Server and Microsoft 365 products, are part of its inquiry.

It is due to update on its investigation imminently.

Microsoft in 2020 introduced new license fees for running its software on major cloud providers.

The claim alleges it then used the fees to induce customers to use its Azure platform.

Data from the Competition and Markets Authority published in May showed Microsoft was winning customers at a significantly higher rate than other cloud providers since it made the licensing change.

The United States Federal Trade Commission last week opened a broad antitrust investigation into Microsoft, including its cloud computing business, according to a source familiar with the matter.

The FTC is examining allegations the software giant was potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving from Azure to competitive platforms, sources said last month.