One of the riskiest and attractive bets in the world of smartphones, which came just a year ago, seems to be about to say goodbye to the market. We refer to Essential, the company created by Andy Rubin, the father of Android, who wanted to bet everything on innovation directly attacking the premium range, which finally seems to have buried his aspirations.
According to Mark Gurman, Andy Rubin has canceled the development of what would be the second generation of the Essential Phone and has hired Credit Suisse Group AG to receive advice on a possible sale of the company to the highest bidder, this according to some sources related to the plans of the company.
The Essential Phone was presented a year ago, on May 30, 2017, and today it is the smartphone with the highest screen ratio on the front with 85%. It is said that so far has only sold about 150,000 units, this thanks to its price reduction a few months ago, as the first data pointed to 50,000 units with the original price of 699 dollars.
According to the information, the Rubin startup spent just over 100 million dollars on the development of its first devices, which includes the Essential smartphone and an “intelligent” device for the home that would be launched in 2019. This means, that in just one year, the company has spent a third of what was collected at the beginning of its foundation (300 million dollars).
According to the sources, the sale of Essential contemplates to giving all the control of company where the patents are included, all the developed hardware, the engineering personnel, that counts on ex-employees of Apple and Google, as well as all the future projects.
It is said that Essential is still studying the proposals and the sale price, but apparently, there is already a possible buyer who would be interested in keeping all the company’s development.
Here we must remember that since its launch, the Essential Phone faced many problems. First the delays in the launching, the failures in the camera and the tactile capacities of the screen, as well as being able to make telephone calls. Most of this was resolved with updates, but the main problem was the price since nobody was willing to pay $ 699 for a new company, no matter what it will be Andy Rubin.
Added to this, the initial availability limited to only the United States, and its late launch for some European countries ended up condemning one of the bravest stakes in the market. Now we just need confirmation of this and know what will happen with Essential and its current customers.
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