Essential is Up For sale and is actively “shopping” itself around

Essential’s second phone was due to be launched soon. However, reports by Bloomberg suggest that the company is up for sale and is actively “shopping” itself around. However, the situation is still perplexing. While some reports indicate that the company is up for sale, the others suggest that it has started working on other future products.

There is just one thing that can be stated certainly right now. Essential is not coming up with a sequel to its phone. Engineers of the company are now all geared up to work on a smart home device which is due for launch next year. The smart home device may be the same as that announced by Essential to give fierce competition to Echo.

Reports by Bloomberg also suggest that Essential is mostly planning to stay in the phone business. It is just planning to abandon the designing of phones. Instead, it is likely to contact Foxcann for most of the development of the phones. This step seems crucial as the first and only phone launched by the company has only managed to sell around 150,000 pieces since its launch in August.

Talks of sale haven’t gone far yet. If the plan does materialize, Essential is primarily planning to sell off everything right from the patent and the hardware to shifting its employees to whichever company places the highest bid.

Essential Founder, Andy Rubin, seems to be as lost as the reports which are in the air. According to him, no one including him knows what is best for the company at the moment. They are in the process of contacting bankers to raise funds for the company.

The debut of Essential was marked with much excitement among the tech enthusiasts. The innovative design was thought to be exemplary. However, in the rat race of competition, it does not take long for other companies to match up with the developments. Pretty soon, the market was flooded with companies selling phones based on similar designs. With its prices set at a substantially high level, Essential was among the top-tier phones. Well established brands started selling similar phones at a considerably lower rate. Thus, Essential stood a dismal chance to gobble up a substantial proportion of the market. Also,  the software of the phone was overridden with certain inherent flaws. At such a high price, the camera which the phone offered was also not of the expected quality.

Essential has since then aimed to fix the glitches in its first phone through a score of updates. It has even managed to improve the situation to a moderate extent. However, the company isn’t very sure of its strategy to lure customers again since most of the companies in the market have now come up with similar phones boasting of an edge-to-edge display. The pace of the market has indeed outlasted Essential.