Almost a year, Essential bought only 150,000 smartphones – a tiny amount in comparison with competitors.
Essential has canceled plans to develop its next smartphone and is looking for a buyer for patents, mobile business and all development. Despite the problems, the company plans to release some devices for the house. This was reported by Bloomberg with reference to its own sources.
According to Bloomberg’s interlocutors, engineers working on Essential Phone 2 were transferred to product development for a “smart” home. It is planned to be released in 2019, it may be the competitor Amazon Echo, which the company spoke about in 2017.
The sources of the publication noted that Essential is considering the possibility to stay in the mobile business, but not doing the design of the smartphones themselves. Instead, the company will sign a contract with Taiwanese Foxconn, and she will control “most of the development” of devices.
So far, the plans for the sale of the company have not reached serious negotiations, but if it happens, Essential hopes to sell everything it can – patents, hardware developments, drafts and even replace employees, if necessary.
In a conversation with The Verge, a representative of the company partially confirmed the cancellation of the development of a new smartphone.
We always have several products in development at the same time and we cancel some of them for the sake of others, which, we think, will become big hits. We make every effort to our future game-changing products, including mobile and home devices.
According to The Information, the founder of the company Andy Rubin sent a letter to employees, in which he announced his own helplessness before the situation.
Nobody (including me at the moment) does not know what will be the best solution for the company. We work with bankers to find money.
May 30, 2017, one of the creators of Android Andy Rubin introduced Essential Phone – a modular “frameless” smartphone in a titanium case. The company promised to begin shipping devices in June 2017, but the delivery times were shifted several times , and in July 2017, Essential left key employees.
When the flagship company Rubin went on sale, he could not compete with other manufacturers. Essential sold only 5,000 smartphones in two weeks, while, for example, Apple did the same in 15 minutes.
By May 2018, the company had supplied a total of 150,000 devices. In this case, even those who still bought a smartphone, complained about the problems with a dual camera and software. In addition, Essential Phone was sold at the price of flagships, although it did not have a special advantage over them.
At the end of 2017, Andy Rubin left Essential as CEO, and the president of the company took up operational activities.