Essential is part of Rubin's incubator named Playground Global and according to Crunchbase, it has raised about $330 million so far. Bloomberg reported today, May 24, that the company has canceled plans for a follow up to its first phone, released a year ago, and is mulling whether to sell itself.
Sales of the Essential Phone were reportedly poor, with the company only selling 88,000 phones in 2017.
The Essential phone went on sale in August for $699 with a new design that featured reduced bezels. For everyone else, the device was priced at a whopping $700 when it launched nearly exactly one year ago. Essential cut the $700 price to $500 two months later after launch.
Oh no, the end for Essential as we know it may be near, guys. So after the sale, all operations of the company will be handled by the new owner only. The Verge reports only around 150,000 phones were sold. The Bloomberg report also notes that the company sold more than 150,000 phones which were priced at about Dollars 699 upon launch, which was later brought down to USD 699.
Bloomberg reports that the company has lost "dozens of hardware and software engineers as well as top executives". Brian Wallace, the original vice president of marketing, left just weeks after the company started.
What's in store for Essential? . A deal hasn't been made with another company yet, though. Overall, Essential Products spent around $100 million on its first line of products - about ⅓ of what it spent on building the entire company.
This doesn't give any conclusive information about Essential's exact plans moving forward, but that doesn't mean it isn't telling. According to Bloomberg, the company is looking for another manufacturer besides Foxconn to build a device and continue the Essential brand.
Creator brand sells Android smartphones Essential.
Even with Andy Rubin's name behind the company, Essential struggled to carve itself a niche in the Android smartphone world. The product does not use Google or Amazon smart home services, which sounds like a tough sell.
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