Slashdot Mirror


Essential Products, Startup From Android Creator Andy Rubin, Lays Off 30 Percent of Staff (fortune.com)

Essential Products, a startup founded in 2015 by Android creator Andy Rubin, was started to create a smartphone with high-end design features that wasn't associated with a particular operating-system maker. Unfortunately, reaching that goal has been harder than anticipated as the company has laid off about 30 percent of its staff. Fortune reports: Cuts were particularly deep in hardware and marketing. The company's website indicates it has about 120 employees. A company spokesperson didn't confirm the extent of layoffs, but said that the decision was difficult for the firm to make and, "We are confident that our sharpened product focus will help us deliver a truly game changing consumer product." The firm was Rubin's first startup after leaving Google in 2014, which had acquired his co-founded firm, Android, in 2005.

Essential's first phone came out in August 2017, a few weeks later than initially promised. It received mixed reviews, with most critics citing its lower quality and missing features relative to competing smartphones, such as a lack of waterproofing and poor resiliency to damage. The company dropped the price from an initial $699 within weeks to $499, and offered it on Black Monday in November 2017 for $399.

56 comments

  1. Well, make something people want to buy? by Anonymous Coward · · Score: 0

    Instead of sucking down VC money

    1. Re:Well, make something people want to buy? by Anonymous Coward · · Score: 0

      Instead of sucking down VC money

      It is always hard to create profit be competing in a crowded market. It just is.

      I'm not sure of this exact company, but assuming they are focusing on quality, well, how do you sell quality and security when your market is most people looking for good enough? Hell I have the same problem at work. I write top notch software that often does more than what people ask for, but that is usually seen as me wasting time with crap that's not important. (Usually requirements are crap so if I didn't write more than what they ask for I'd write nothing, but that is another story.)

      How do you get people to value quality when crap is usually considered good enough, particularly if you have some good power point slides? The goal is often to be seen as doing something important. Actually doing something important to a high degree of quality is less important than the splash. Meh, I think I need a new employer, but anyway.

    2. Re:Well, make something people want to buy? by 110010001000 · · Score: 1

      How would you know if the phone was secure? Some of the bits weren't open source. It could have been sending all your data to Google. You would never know. So how would a consumer judge the security? And as for quality: it is just the same old typical junk you can get out of any phone. All Android phones at the same price point are roughly the same hardware, sourced from the same manufacturers.

    3. Re:Well, make something people want to buy? by Anonymous Coward · · Score: 0

      how do you sell quality and security when your market is most people looking for good enough?

      Look at it from a different angle: these days you can get a very nice device for a pretty low price. Is that not a good thing?

    4. Re: Well, make something people want to buy? by Anonymous Coward · · Score: 0

      Agreed... he is essentially a moron

      We have more than enough lousy Apple wannebe phones already

      Nothing special about sucking up to Apple. .. he must do something truly interesting to compete

    5. Re:Well, make something people want to buy? by squiggleslash · · Score: 2

      Make it a few mm thicker and add a battery that lasts 3-4 days. Ensure it has a headphone jack. Don't add a notch, and do add dedicated buttons (which can be touch, that's fine) on the bottom (and minimize other annoyances.) Make it dockable, maybe running ChromeOS in its docked state. And give it a decent screen and cameras.

      There. A phone that everyone will want that nobody sells right now that you can probably sell for $200 or less given what other manufacturers are doing - and make money from assorted "docks".

      The market is crowded, but crowded with me-too phones that suck. It really isn't hard to make a phone that doesn't suck, it's just nobody wants to do it.

      --
      You are not alone. This is not normal. None of this is normal.
  2. Why even bother? by Anonymous Coward · · Score: 0

    Just close the doors. Anyone who is currently employed there better damn well be looking for their next gig.

  3. Saw it coming... by SirAstral · · Score: 3, Funny

    He sold out to Sprint and still didn't listen to consumers and decided it was a good idea to allow a privacy faux pas. I mean, if you are looking to upset the industry you sure as heck cannot look and act just like them to do it!

    1. Re: Saw it coming... by Anonymous Coward · · Score: 0

      Who are those idiots who work for startups.

  4. 30% Price Discount by Anonymous Coward · · Score: 0

    30% Staff Layoff

    Coincidence? You decide...

  5. Did they oursource their jobs to India by Anonymous Coward · · Score: 0

    Like Ericsson/MediaKind?

  6. One Plus . . . by Anonymous Coward · · Score: 0

    . . . won't be history shortly, and you can get one of those for the same. Why drop big bucks on a phone that is stillborn?

    #Kashoggi

  7. Why? by 110010001000 · · Score: 1, Troll

    It has a valuation of $1,000,000,000! I mean it is worth so much! Why would you lay off people? That would like like Tesla laying off people even though it is worth $168,000,000,000.

    1. Re:Why? by SeaFox · · Score: 3, Funny

      It has a valuation of $1,000,000,000! I mean it is worth so much! Why would you lay off people?

      Apparently they weren't essential personnel.

    2. Re:Why? by Anonymous Coward · · Score: 0

      Your humor is "optional"...

  8. In related news by Waffle+Iron · · Score: 3, Funny

    The company has also announced that in the coming weeks they will be changing their name to "unnecessary".

  9. Shrug. by DalM · · Score: 2

    Surprise. No one cared about an overpriced below average phone that offered nothing of interest beyond minimal curiosity among nerds.

    1. Re:Shrug. by Anonymous Coward · · Score: 0

      Hey now. Some of us really really like our Essential Phones. After the price break, they were a great deal. 835 snapdragon, 128 GB internal memory, reduced bezels, big screen and straight Android. Yes, it wasn't a perfect phone but if my current one died, I'd most likely buy another if I could and would have loved to see a second Essential phone in the future.

    2. Re:Shrug. by Anonymous Coward · · Score: 0

      Cool story, Andy.

    3. Re:Shrug. by Anonymous Coward · · Score: 1

      On the same news, his overpriced bakery in Los Altos, Voyageur du Temps, is closing and Rie Rubin is getting a divorce.

    4. Re:Shrug. by Anonymous Coward · · Score: 0

      No micro SD slot, no headphone jack, no wireless charging, a crap camera that takes forever to do anything, a screen with an oddball resolution that shatters if you look at it wrong...yes, truly the Essential PH-1 is a marvel of technology...

      Call me crazy, but I'll stick with my G7.

    5. Re:Shrug. by Anonymous Coward · · Score: 0

      Hey crazy,

      How much do you spend on your G7 (if you got it via monthly credit from one of big carriers, then you have to add in the extra cost incurred to be a direct customer of the big carrier).

      I paid $280 for my Essential PH-1 last year, only a few months after launch (it's been as low as $200 this year), the specs match all the flagship phones from last year.

      Essential PH-1 @ launch price of $699 = not a great deal
      Essential PH-1 @ $250 = 2nd best phone I ever owned (and I've only owned flagship phones)

    6. Re:Shrug. by Anonymous Coward · · Score: 0

      Nope. $550 brand new, carrier unlocked, global phone.

      What do you have to say now? Nothing? Yeah, that's what I thought.

      Essential PH-1 is currently $400 new. If you paid $250, then you bought a USED phone.

      Oh and guess what? My G7 has a card slot, headphone jack, wireless charging, a good camera, an FM radio, a much more powerful CPU, a much more powerful GPU, a much higher resolution display, vastly superior durability, is dustproof, is waterproof, is lighter, has an update for Android 9 coming and isn't made by a fly-by-night company that's in danger of going out of business. All for only $150 more.

      Glad you're happy with your "smart"phone though, LOL.

    7. Re:Shrug. by Anonymous Coward · · Score: 0

      "No one cared" sounds like "No one uses Google+" despite millions doing so.

      Essential PH-1 is the closest thing to a Nexus that isn't a Pixel (which are too highly priced IMHO).

      Here's all the smart phone I have owned (phones need to have CDMA):

      Motorola Droid [1], Motorola Droid X2, Motorola Razr Maxx, Samsung Note II, Samsung Note 3, Nexus 6, Essential PH-1

      My favorite in order:

      Nexus 6, Essential PH-1, Motorola Droid [1], Samsung Note 3, Samsung Note II, Motorola Razr Maxx, Motorola Droid X2

      The first 3 favorites all have unlocked (or user unlockable) bootloaders. I would have bought Nexus 6 if they would of had CDMA (only the Galaxy Nexus before the 6 had CDMA).

      we NEED more user unlockable bootloaders, not less.....well unless you like people telling you what you can and cannot do with *your* phone.

    8. Re:Shrug. by Anonymous Coward · · Score: 0

      Should be been "I would have bought Nexus (less than) 6..." but the less than sign gets removed when I submit.

    9. Re:Shrug. by Anonymous Coward · · Score: 0

      Here you go! You accidentally lost this <

      This site runs on filtered HTML. One might be looking for: & lt; (without that space). See link for more examples of this.
      Note: Slashcode strips some of the extra spacing and the like out due to the ASCII, GNAA and similar trolls.

      I do miss the ASCII DO NOT FEED THE TROLLS signs, though.

  10. staff * .3 by bugs2squash · · Score: 4, Funny

    My god, I hope 30% of the workforce turned out to be an integer number of people.

    --
    Nullius in verba
  11. Andy, give us what we want. by Gravis+Zero · · Score: 2

    Being just another smartphone on the market isn't going to cut it when you're charging sky high prices. No, this doesn't mean you should add a 5th camera ("fuck it, we're doing six!") or making it so thin that it bends if held tightly. What it means is you give people what they want. It's not complex either, it's removable battery packs, a headphone jack, a MicroSD Card slot and solid but modular construction that is robust that still allows the owner to replace parts if/when they break it.

    It's not sexy but it's what we want. Sadly, you want to sell us a new version of the same phone every year, like Apple and make a killing but that requires an insane amount of capital. Just give us what we want and you will sell lots of smartphones, just not every single year ad infinitum.

    --
    Anons need not reply. Questions end with a question mark.
    1. Re:Andy, give us what we want. by Anonymous Coward · · Score: 1

      It's not complex either, it's removable battery packs, a headphone jack, a MicroSD Card slot and solid but modular construction that is robust that still allows the owner to replace parts if/when they break it.

      That's just going to end up targeting the small group of people that thought the Nokia N900 was a good smartphone (I'm in that group) but that is simply not profitable. Take the LG V20 for example, it is a sturdy device with a removable battery, SD card slot and a headphone jack but LG's sales are tanking and the phone never sold well because, as i said, the market for such a device is very niche and not profitable.

    2. Re:Andy, give us what we want. by HarrySquatter · · Score: 3, Insightful

      It's not sexy but it's what we want.

      Pretty sure that 'we' is vastly overstated.

    3. Re:Andy, give us what we want. by Anonymous Coward · · Score: 0

      "...you give people what they want. It's not complex either, it's removable battery packs, a headphone jack, a MicroSD Card slot and solid but modular construction..."

      Yeah, no. I don't what a 'lego kit' phone, sorry pass. That's a hacker phone, they'd sell 15. Ok, ok, 51.

    4. Re: Andy, give us what we want. by astrofurter · · Score: 2

      Wait, I don't understand - how would any of those features help Big Brother spy on us even more?

      You know what they say in Surveillance Valley: if it doesn't snoop like a deranged stalker or arbitrarily restrict freedom of speech, it's not REAL innovation!

    5. Re: Andy, give us what we want. by Anonymous Coward · · Score: 0

      *crickets*

    6. Re:Andy, give us what we want. by Anonymous Coward · · Score: 0

      There was/is no product team at Essential. Just Andy Rubin spouting off half-baked ideas and hardware and software teams running around experimenting with them. So nobody was actually starting with a real customer need and trying to figure out how to fulfill it. Conceptually the idea of bootstrapping their way to a presence in the market with a less ambitious project while they worked on a more ambitious project sounded good, but even if you are Andy Rubin, hiring the right kind of talent is brutally hard in Silicon Valley, and their less ambitious project (the Essential phone) was too complicated, expensive and didn't fulfill a clear customer need, and their more ambitious projects were all over the map, underfunded, understaffed, disorganized and again, they also didn't fulfill a clear customer need, prove that out with a minimum viable product and move from there.

      Your CEO cannot be your head of product, product manager, head of engineering and sole decision maker, while also running a billion dollar venture capital firm, going through personal life crises and generally being all about his own ego. Also, going for the unicorn valuation too early before you have a real team in place just screws you over - some Chinese VCs might think your stock is worth that, but then nobody wants to come work for you for your vastly overvalued paper.

    7. Re:Andy, give us what we want. by tehcyder · · Score: 1

      It's not sexy but it's what we want.

      Where "we" means slashdot-reading geeks, as opposed to "the general public".

      Seriously, do people here really think that if there was a mass market for phones with huge removable batteries, Samsung or HTC or whoever wouldn't have jumped in and grabbed it?

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  12. Another iPhone killer bites the dust by Anonymous Coward · · Score: 0

    On to the next.

  13. Re:staff * .3 by Anonymous Coward · · Score: 1

    "Sorry Phil, your leg is fired."

  14. creimer has a gnarled micropenis. by Anonymous Coward · · Score: 0

    John Romero will hire them and he promises to not even make you his bitch.

  15. Well of course they were cut by SuperKendall · · Score: 1

    Turns out those staff members were non-Essential.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Well of course they were cut by LesFerg · · Score: 1

      If they haven't produced the product yet, why were they even paying marketers?
      Surely that is pre-emptive and wasteful, after all, the product was going to be so good it would sell itself.

      --
      If I had a DeLorean... I would probably only drive it from time to time.
    2. Re:Well of course they were cut by Anonymous Coward · · Score: 0

      If they haven't produced the product yet, why were they even paying marketers?
      Surely that is pre-emptive and wasteful, after all, the product was going to be so good it would sell itself.

      They were trying to build a premium / luxury product.

      That is almost entirely a marketing type situation, in that you are trying to convince people that this product is better than everything else and they need to spend extra money on it.

      Like any other premium product, it is actually only marginally better than the average, but much more expensive, requiring marketing to convince you to buy it, since there is no logical reason to do so.

    3. Re:Well of course they were cut by Anonymous Coward · · Score: 0

      If your marketing is good enough, you don't even need a product.

    4. Re:Well of course they were cut by tehcyder · · Score: 1

      If they haven't produced the product yet, why were they even paying marketers? Surely that is pre-emptive and wasteful, after all, the product was going to be so good it would sell itself.

      Contrary to popular wisdom, if you build a better mousetrap and don't market it, the world doesn't beat a path to your door.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    5. Re:Well of course they were cut by LesFerg · · Score: 1

      So did they have a product ready to sell already?

      --
      If I had a DeLorean... I would probably only drive it from time to time.
  16. Re:staff * .3 by sonamchauhan · · Score: 1

    Don't worry - you keep your limbs. They just stop paying for the 'extra' leg or organ.

  17. MAKE. A. DUMBPHONE. by Anonymous Coward · · Score: 0

    Demand for feature phones are still pretty high- millions of them are still sold every year in the US!

    Make one with a good camera, 4G/LTE, emojis, a lag-free interface, a good maps application and a usable web browser (like Firefox mobile) and you'll easily capture 90% of the market.

    Become the "essential" feature phone.

    But of course, this will never happen.

    1. Re:MAKE. A. DUMBPHONE. by Anonymous Coward · · Score: 0

      Feature phones can be had for $10-20. If you stop cutting corners and add all that crap, you make them more expensive. And then you have to compete with low-end smartphones.

      Also, emoji is cancer. Fuck that shit.

    2. Re:MAKE. A. DUMBPHONE. by Anonymous Coward · · Score: 0

      I never even noticed when the kids stole emoticons and started calling them emoji. It's sounds like some loser weaboo shit.

  18. David Brock diddles kiddies by Anonymous Coward · · Score: 0

    Democrat party operative and notorious troll-master David Brock enjoys molesting young boys in his basement.

  19. the phone I want by Anonymous Coward · · Score: 1

    1) Security/Privacy is top priority
    2) Physical keyboard with real keys
    3) Removable battery
    4) Headphone jack

  20. A pity by DrXym · · Score: 1

    It looked like a nice phone. It was far too expensive though.

  21. This is the cost of grievous mistakes by The+Faywood+Assassin · · Score: 1

    Releasing a phone in 2017 that has a poor camera and reception issues is unacceptable.

    If you don't do your homework on what people want and don't do proper field research on the item's performance, this is what happens.

    --

    "I'm a humble person really,

    I'm actually much greater than I think I am"

  22. There is an alternative on the market much cheaper by randomErr · · Score: 3

    You've heard of all the clones of the Raspberry Pi SBC? One of them is the Orange Pi. They have a line of DIY kits that will let you build your own phone starting around $40 on AliExpress.

    --
    You say things that offend me and I can deal with it. Can you?
  23. Competition just too much by Anonymous Coward · · Score: 0

    The smartphone market is hardly the market for a startup that barely offers much different then the rest. The mediocrity along with a high price just doesn't cut it.

  24. He had a dream by Anonymous Coward · · Score: 0

    A dream nobody was interested in buying.

  25. Too expensive for a "no name" by p51d007 · · Score: 1

    Product. Saw the specs before release, then when the price was announced at 700 bucks, just laughed it off. Once they had the "fire sale" on Amazon for less than 300 dollars, got one as a backup. Good phone, updates quickly, but does have one little issue. (USA user here) The antenna/modem or case design causes the signal to suffer. Couple places where my mate 9 has a signal, the Essential has NO signal. Ran it for 3 months, other than the antenna/signal issue, NOT ONE other problem. Updates usually 1-2 days at the beginning of the month, fast, no lag, battery makes it through the day with 30-40% to spare. They should have done like Oppo did with the OnePlus brand. Build it for a give away price, do some viral marketing and what not to build a fan base. But, they thought just because "Andy Rubin's" name was one it, they could charge what they did. Outside the tech/geek bunch, no one has a clue who he is.