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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.

25 of 56 comments (clear)

  1. 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!

  2. 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.

  3. 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".

  4. 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: 1

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

  5. 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.

  6. 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
  7. 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 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!

    4. 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
  8. Re:staff * .3 by Anonymous Coward · · Score: 1

    "Sorry Phil, your leg is fired."

  9. 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 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
    3. 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.
  10. Re:staff * .3 by sonamchauhan · · Score: 1

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

  11. 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

  12. A pity by DrXym · · Score: 1

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

  13. 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"

  14. 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?
  15. 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.
  16. 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.