Pixel Aren’t Cheap Anymore And That’s the Point
For years, the Google Pixel line has navigated the high-end smartphone market, maintaining a competitive, yet often lower, price than its primary rivals. The devices were flagship phones, but the pricing of the standard models like the Pixel 6 and 7 were as much as $200 cheaper than the equivalent iPhone. That strategy has demonstrably changed. As the price of Pixel phones slowly climbs across the board, so too do their sales figures, culminating in record-breaking months. This counterintuitive success points directly to a fascinating economic principle: the Veblen Effect.
Raising the Bar to Gain Prestige
The Veblen Effect describes a specific type of market behavior where demand for a good increases as its price increases. This runs contrary to standard economic principles. The logic is simple: a high price signals exclusivity and status, making the item an aspirational purchase.
Google’s pricing strategy mirrors this shift. Looking at the trend, especially from the Pixel 6 and 7 which were initially priced lower than their competitor's flagships, the price floor for the core Pixel line has continually been raised. This is not merely inflation or supply chain chaos; it is an intentional, strategic effort by Google to move the Pixel from a value-oriented flagship into the coveted premium phone market. You cannot sell a luxury phone at an entry-level price point. By raising the price, Google elevates the device’s perceived status, transforming it into a product people desire for reasons beyond pure utility.
A Polished Look
The dramatic shift in the Pixel's physical design serves as a powerful visual confirmation of Google's premium strategy. The older design ethos, exemplified by the Pixel 5, favored a smaller, more utilitarian build, featuring a textured aluminum back, a subtle camera bump, and an emphasis on comfortable handling. This understated approach has been abandoned. Later Pixel models, starting notably with the Pixel 6 and refined in subsequent generations, embrace a striking, unapologetically high-end aesthetic. They now feature a dominant, instantly recognizable camera bar, premium glass backs, and polished metal frames with flat sides. This pivot to luxurious, durable materials and bold symmetry ensures that the Pixel looks every bit as premium as the latest iPhone. The visual message is clear: Google is no longer positioning the Pixel as a humble, cheaper alternative. The design now emphatically declares to the market that "iPhones are not better."
This premium shift isn’t limited to hardware, the software has evolved too. Material 3 Expressive, the latest iteration of its design language, gives Pixel a distinct visual identity that feels refined without being sterile. It’s not trying to mimic Apple’s polished minimalism or Samsung’s glossy uniformity. Instead, it leans into bold color choices, fluid animations, and a kind of playful elegance that feels unmistakably Google. The UI doesn’t just look good, it feels intentional, like it was designed to stand out in a sea of sameness.
Learning From Apple
To see this strategy perfected, you only have to look at Apple, the undisputed master of the Veblen Effect. iPhones are not just electronics; they are prestige devices. Google is now attempting to tap into that same psychological driver.
This is not the only way Google is running down a trail laid by Apple either. Apple's success relies on both premium pricing and a perception of high security through its "walled garden" ecosystem, Google is also moving to adopt the latter through new policies forcing Android developer ID verification. This is an overt step toward making Android a more locked-down, integrated ecosystem. Google is clearly shifting its strategy to compete with Apple not only on price perception, but also on the public's perception in all facets.
Google wants to be seen as a brand on the same level as Apple, but one that still does things to Google way. Fun, lighthearted and smart.
This strategic positioning is what makes Google's discount strategy so effective. By establishing a high, premium retail price first, Google communicates that the Pixel is a luxury device. When sales or carrier deals lower that price, users see this not as a sign of desperation, but as a golden opportunity to get an expensive, high-status device at a discounted rate. This approach allows Google to leverage the Veblen Effect, communicating a premium brand message, while still driving volume with strategic, limited-time deals.
More Than Just the Price Tag
While the shift to a premium, Veblen-aligned pricing model is central to the Pixel's increased sales, it is far from the only driver of its success. Google has made deliberate, high-impact investments that have expanded its market reach and elevated the Pixel brand. One of the most significant moves has been a dramatic increase in advertising spending. By flooding mainstream channels with Pixel messaging, Google has pushed the brand into broader public awareness, positioning it as a serious contender against entrenched leaders like Apple. These campaigns haven’t shied away from confrontation either—Google has taken direct aim at Apple in its ads, highlighting key differences in ecosystem philosophy and user experience.
Equally important has been Google's improved cooperation with mobile carriers. The company has secured stronger partnerships with major providers like T-Mobile and Verizon, increasing Pixel’s shelf presence and promotional support. This expanded carrier footprint has translated into real market gains, with Google’s share in the premium $600+ category jumping from under 1% to roughly 7% in just a few years. Together, these moves—aggressive marketing and strategic carrier alignment—have helped transform the Pixel from a niche alternative into a mainstream premium player.
The 'Smart' Alternative
Google has spent loads of money doing everything it can to convince you and everyone else that their phones are smarter than the phone you have in your pocket. They tout the Tensor processor as a boon for AI tasks (even if that’s probably not true) and focus so heavily on AI that many hardcore techies don’t even want to watch their presentations anymore.
By doubling down on AI features that appear magical to the average consumer, Google successfully differentiates the Pixel line. They are banking on the idea that it’s a lot easier for someone to understand that telling your phone to remove the fence from a photo you took and having it do so flawlessly is a lot more attention grabbing than some smaller numbers on a synthetic benchmark. I am fully convinced that Tensor isn’t about speed, it’s about branding and probably a bit of cost saving.
The combination of strategic price elevation, psychological marketing, the momentum of later models like the Pixel 10 achieving Google's best sales month ever, and improved logistical factors like advertising and carrier support has provided Google with a recipe for significant success. The Pixel is no longer the value flagship; it is a luxury brand in the making.