Essential Products

Essential Products was founded by Andy Rubin, the creator of Android — arguably the most influential mobile operating system in history. After leaving Google, Rubin founded Essential with the ambitious vision of building a premium smartphone that would rival Apple and Samsung, backed by an ecosystem of modular accessories. The company raised $330 million from investors including Foxconn, Amazon, and Tencent, making it one of the highest-funded hardware startups ever. The Essential Phone (PH-1) launched in August 2017 at $699 with a distinctive titanium and ceramic design, a near-bezel-less display (one of the first), and a modular magnetic connector on the back. On paper, it was impressive. In practice, it was a commercial disaster. The camera was mediocre at launch, the screen had scrolling issues, and the modular accessory ecosystem never materialized beyond a 360-degree camera. Essential sold approximately 150,000 units — an embarrassing figure in a market where Samsung and Apple each sell hundreds of millions. The situation was compounded by personal controversy: in November 2017, reports surfaced about an inappropriate relationship allegation against Andy Rubin during his time at Google (Google had paid Rubin $90 million in an exit package despite the allegations). Essential cancelled its planned Essential Phone 2, and the company slowly wound down. In February 2020, Essential Products announced it was shutting down, with Rubin stating the company had been unable to find a way forward. The $330 million investment was essentially lost. Essential's failure demonstrated that the smartphone market is so mature and dominated by Apple and Samsung that even the creator of Android — with massive funding and genuine hardware innovation — cannot break through.