Essential Phone 2 has been canceled and the company is reportedly up for sale

Essential Phone 2 has been canceled

The Essential Phone 2 has been canceled, according to a report by Bloomberg. Andy Rubin’s start-up is also up for sale, and has found an interested buyer.

This should come as bad news for fans of Essential. The company is not even a year old in terms of business operations, since the Essential Phone (the PH-1), was only released in August 2017, after some delays.

There were a lot of people who were looking forward to the successor to the device, whose hopes have virtually been dashed, now that the Essential Phone 2 has been canceled. So, what went wrong for Essential?

Most likely, the problem is with sales and profits. The Essential phone debuted at $699, competing head on with premium flagships, such as the iPhone. Despite having beaten Apple to the punch by launching the first phone with a notch, and an almost full-screen display, Essential was hit by low sales numbers.

Of course, unlike the Cupertino giant, the start-up didn’t have the resources to sell its phone globally. This made the Essential Phone a US exclusive product. Soon after the launch, the price of the phone dropped rapidly, to take a whopping $200 off of the original price tag.

The $499 price did attract buyers, and that coupled with stock Android, quick OS updates, a good design, did win the hearts of many fans. The Essential Phone is among the first devices which are part of the Android P Beta program.

So, at $200 loss per device, the profits can’t have been good, at least surely not as much as the original plan was.

Unofficial reports suggest that only about 150,000 units of the Essential Phone had been sold in the US. There were even reports about the phone being sold in India, but they never materialized.

While we though this could be a rumour, a Tweet from Andy Rubin himself seems to confirm that the Essential Phone 2 has been canceled.

However the Tweet does mention that the company could be making some other products in the future, and the presence of the word “mobile” is most definitely reassuring. The first sentence is worth noting, since it suggests that the cancellation of the PH-2, may have been done to make a better phone than had been planned.

We hope that Essential finds a buyer to boost its finances and bounce back with a bang.

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About the Author: Ashwin Karthik