Pixel Phones, What is Google Thinking

It's a feedback cycle. Google develops software products which they want consumers to use to gain data which makes them better at selling ads (basically). People spend a lot of time on smart phones. It makes sense to develop a phone in the Google ecosystem. Google Now, Google Assistant, Google Translate, all designed to gather information on people which drives their core business.

As mentioned above, capturing a slice of the high price market is valuable. I recall reading a news article suggesting that online retailers jack up the price when they detect the Safari browser. They figure people who buy Apple products are willing to spend more money.