The Pixel are new and have innovations assistant , allegedly better camera that distinguishes them from previous comparable phones . Their prices will drop when other OEMs release similar or better phones . But Google is on its way to copy apple but I will come to that later . This is how free markets work . In a free market with identical goods and multiple producers , producers cant make a real profit . To make a profit they need to get a monopoly somehow . This can be achieved politically , through business practices , naturally or by innovation . The android smartohone markets is very competitive in the sense that there is competition by innovation . Phone manufacturers innovate and improve or bring new features to their phone , not because they are samaritians , but because they want to make a profit and stay in the market . By innovating , companies can create new markets or conquer a market this is the creative destruction by Schumpeter . You can see this every year . Take the example of Samsung . They improve their Galaxy S each year and try to add unique features . And when its released no other phone or very few other phones have these features . But then soon enoigh , other OEMs offer similar features or close substitutes at a lower price , Samsung reacts by lowering their price . This goes on until the profit from each phone sold trends against 0 . In reality Samsung has such a brand recognition that people are willing to oay more for Samsungs than for comparable phones , so Samsung makes some profit . Apple has managed to lower the effects of the competition . They achieved this by creating a very strong brand and community others may say cult that isnt substitutable by another OEM . Additionally , they made it dificult for users to switch to Android by closing their customers into an ecosystem . So if somebody would want to switch hes confronted with issues about mesaaging with his friends , his music on itunes , his photos on icloud , his apps having been bought in the apple store . In android , it doesnt matter what phone you use , you can still access the playstore except if youre in China . Its easy to switch OEMs . So there is a lot of competition . Google will always have this competition as long as there is android but at the same time , they are trying to move away from it into a closed ecosystem . The development of so many google services plus the assistant and the pixel line is a sign of it . In essence they want you to be in it and never leave it so they can charge a monopoly price for the phone . We will see if it works . Edit why the downvotes ? This is economics 101 . If you want to learn more read Aghion , Schumpeter , Smith , Acemoglu , Romer etc . Etc .