Andy Rubin puts Essential up for sale, and cancels the Essential 2

[KRS]

Android co-founder started teasing an upcoming smartphone from his start-up, Essential, early last year. There was a lot of excitement from enthusiasts over the device, given the person that was behind it. Unfortunately, the dream was short-lived, as a new report from Bloomberg says that Rubin is putting Essential up for sale.

The news isn't really a surprise, as the PH-1 handset couldn't be called successful by any standard. It had a number of problems that had to be fixed with software updates, and sales were slow enough that the price has now been dropped to just $399.99.

 

And if you were hoping to wait for the successor to that device, you're in for more bad news. That smartphone has been canceled.

According to the report, Essential put over $100 million into developing its debut product, and has raised over $300 million from investors. A year ago, it was valued at between $900 million and $1 billion.

 

The PH-1 was an exclusive to Sprint, the number four carrier in the United States, and consumers also had the option to purchased an unlocked model if they wanted to use it on a more popular carrier like AT&T or T-Mobile. Unfortunately, that's not a popular method of buying phones in the United States.

 

Source

[ADN]

Update : In a leaked email (obtained by The Information), Rubin said the company is "working with bankers to raise money," and an acquisition might be part of such discussions. He, however, made it clear the company isn't shutting down.

 

Referring to the Bloomberg article, he said it "will not position us well for optimizing" the fundraising effort," adding that "I’m going to focus on winning and not whining."

 

He also said "no one (including me at this moment) knows what the best thing for the company will be."

 

Gsmarena.com