Essential Reportedly Cancels Its Second Phone, Might Sell Itself Off

Isaac Cain
May 25, 2018

At the same time, Essential is "actively shopping itself" around, according to the report. So far, Essential has raised around $300 million from various investors including Amazon, Tencent and Redpoint Ventures. Overall, Essential Products spent around $100 million on its first line of products - about ⅓ of what it spent on building the entire company. While work goes on with this, Essential is now in talks of selling its entire company, which includes its patents on its smartphone, smart home device and a modular camera for the phone.

The rumored sale is not final though "private" talks are said to now be in progress, with the possibility of Essential's hired talent being a part of the deal should an agreement be made and if the sale moves forward.

The Bloomberg also say that a full-blown sale of the company could also be on the cards. While Essential declined to comment on the company's future, Rubin responded on Twitter with a post. Last November, he took a short leave of absence amid reports about workplace misconduct at his previous employer. He added that company is putting more efforts in its upcoming mobile and home products.

The original PH-1 Essential phone launched last August after delays and shipping confusion. The phone aimed to beat Apple's iPhone X to the market with a almost edge-to-edge screen.

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All the above problems could not affect the sales of Essential Phone. As a result, the company has also cancelled plans to bring the next-gen Essential Phone. The phone's initial price was $699, the same as an iPhone viewed as a competitor.

Ruin has said that the company has been working on multiple product simultaneously and have canceled some in favor of those products that may good reception from audience. Since its launch, Essential has lowered the price by $200 and is said to be planning to expand it to other markets as well.

To date, it is estimated that Essential has sold approximately 150,000 units of its first generation phone.

In early discussions around Essential, Rubin had always pushed the idea that the company wanted to step off the typical two-year upgrade cycle for smartphones.

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