Friday, 20 July, 2018

Essential Phone 2 Reportedly Canceled; Company Might Sell Itself Off

Essential Phone 2 Reportedly Canceled; Company Might Sell Itself Off Essential Phone 2 Reportedly Canceled; Company Might Sell Itself Off
Stacy Diaz | 25 May, 2018, 18:31

The first product was the Essential Phone, a smartphone which Rubin billed as hitting reset on how smartphones are both designed and marketed. In a report from Bloomberg, they claim to have heard from their sources that Essential has cancelled its second smartphone which many expected to launch this year. The company is funded with venture capital to the tune of $300 million, with Amazon, Tencent, and Redpoint Ventures holding sizable stakes. The hired talent which is said to have been recruited from Apple and Google are probably going to be part of the deal, but Essential has yet to give the green signal on the sale. The smartphone was the first device to feature a almost bezel-less design with a display notch. Scathing criticisms of the Essential Phone's camera quality and the high price didn't help the phone's initial sales, either. Another option Essential is also said to be mulling is farming out the development of its smartphones to a third-party, saving costs, while still delivering new Essential-branded phones. In the smartphone world, this number is tiny, but also not too surprising as it was a first-gen product from a startup company. The alternative for the company would be to sign a partnership with Foxconn, in order to have an easier life in hardware development and keep at least a slice of the smartphone market. Instead of the smartphone, the engineers at Essential are now working on an independent, smart home product running the company's own Ambience OS.

Essential has kept quiet on the device's sales performance, but industry research firm IDC estimated that the company only shipped around 88,000 units by the end of 2017.

Essential is looking to sell itself barely a year after its first device launch.

He addressed the matter in an email to employees on Thursday, which The Information obtained. When the device finally made its way to buyers, they began to complain about technical problems with the cameras, touch screen and function calls. Brian Wallace, the original vice president of marketing, left just weeks after the company started.