Google isn’t ready to announce any new Pixel hardware anytime soon, but the company did confirm that a Pixel 2 is indeed in the making and it will be released later this year.

Google’s head of hardware Rick Osterloh talked to AndroidPit about the Pixel and its future. The former Motorola exec revealed that Google has some sort of problem with Pixel and Pixel XL manufacturing right now. There are too few devices to meet demand, and some kind of supply bottleneck preventing the company it from fixing it. It’s unclear what exactly is causing these manufacturing issues.

As for the Pixel 2, Osterloh would not confirm a release date, but he did imply the next phone should arrive a year after its predecessor.

“There is an annual rhythm in the industry. So, you can count on us to follow it,” the Google executive said. “You can count on a successor this year, even if you don’t hear a date from me now.”

What Osterloh made absolutely clear is that the Pixel will continue to have a high asking price. The Pixel “stays premium” he noted, adding that there will be no cheap Pixel this year, or in the near future. If you want a cheaper Android phone later this year, your best bet will be to get a phone from one of Google’s vendor partners.

The Pixel 2 will have to fight the iPhone 8, Galaxy S8 and Galaxy Note 8 this year, so it’ll certainly be interesting to see what Google’s hardware department is working on.

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