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The encyclopedia · Product & Design · Product decision · 2017

Andy Rubin's Essential Phone was the 'iPhone killer' — it sold 150,000 units

Android co-creator Andy Rubin launched Essential in 2017 with a $700 titanium phone. It sold ~150,000 units. The company shut down in 2020.

Essential Products · 2017-08

What happened

Essential Products, founded by Android co-creator Andy Rubin, launched the Essential Phone (PH-1) in August 2017. The phone featured a titanium and ceramic body, a near-bezelless display with a camera notch (before the iPhone X), and a modular camera accessory. It was priced at $699 and marketed as a premium alternative to Samsung and Apple.

But the phone launched late, with limited carrier availability (initially Sprint-only in the US) and software bugs. The camera, which should have been the standout feature, was mediocre at launch. The modular camera accessory was never widely adopted. Rubin's personal controversies also damaged the brand.

Essential sold an estimated 150,000 units — a fraction of what was needed to sustain a phone company. The company attempted a pivot to a new form factor (the 'Project Gem' elongated phone) but shut down in February 2020 without shipping it. The case illustrated how a great idea and a famous founder are not enough: execution, distribution and timing matter more than pedigree.

Why it happened

  • The Essential Phone launched late, with limited carrier availability and software bugs.
  • The camera, the phone's key selling point, was mediocre at launch.
  • The modular camera accessory was never widely adopted.
  • Andy Rubin's personal controversies damaged the brand, and the company sold only ~150,000 units.
What it cost~150K units sold; company shut down in 2020costly

The lesson

Pedigree is not a product. Android's co-creator launched a phone that was late, buggy and Sprint-exclusive. In hardware, execution beats reputation every time.

Aftermath

Essential Products shut down in February 2020. The company's patents and 'Project Gem' concept were acquired. Rubin left the tech industry. The Essential Phone is remembered as a promising idea that could not overcome execution and distribution challenges.

Sources

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