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Essential Products

Essential Products, Inc. was an American consumer electronics company founded on November 9, 2015, by Andy Rubin, co-founder of the Android operating system, and headquartered in Palo Alto, California.^[1] The company specialized in innovative hardware design, emphasizing premium materials, modular connectivity, and seamless integration with smart home ecosystems.^[2] Its flagship product, the Essential Phone (PH-1), was an Android smartphone announced on May 30, 2017, and released on August 17, 2017, featuring a pioneering edge-to-edge 5.71-inch display, titanium and ceramic body, dual rear cameras, and a magnetic modular connector called the 360 Camera Mount for interchangeable accessories. Essential Products emerged from stealth mode with significant backing, raising a total of $330 million in funding from investors including Playground Global, Amazon, and Tencent, positioning it as a high-profile challenger to established smartphone makers like Apple and Samsung.^[3] In addition to the Essential Phone, the company announced the Essential Home, a privacy-focused smart speaker with ambient computing features, in 2017, though it was canceled before launch due to shifting market priorities. Later efforts included Project Gem, a concept smartphone showcased by Essential in 2019 as a tall, camera-centric device running a customized Android interface.^[4] Despite initial hype and innovative ambitions, Essential Products faced challenges including relatively low sales of the PH-1—estimated at around 150,000 units—intense competition in the smartphone market, and controversies surrounding founder Andy Rubin, leading to its announcement of cessation of operations on February 12, 2020, with remaining assets liquidated and intellectual property potentially acquired by other firms.^[5]^[6] At the time of shutdown, the company retained approximately $30 million in cash but cited no viable path forward for new product delivery. Following the closure, former employees founded Osom Products in 2021 to pursue similar hardware innovations, though it too ceased operations in 2024.

Company Background

Founding and Leadership

Essential Products was founded on November 9, 2015, by Andy Rubin and Matt Hershenson, with Rubin as the co-founder of the Android operating system during his time at Google.^[1]^[2] The company emerged from Rubin's Playground Global venture fund, with the goal of pioneering next-generation consumer technology.^[2] Rubin, who had departed Google in 2014 amid controversies involving allegations of misconduct, envisioned Essential as a platform for redefining hardware innovation.^[7] The founding principles centered on creating devices that prioritize user-centric experiences through advanced integration of hardware and software. The company's initial vision emphasized developing innovative consumer hardware with seamless integration and premium design, particularly advancing the concept of ambient computing to enable intuitive, context-aware interactions beyond conventional smartphones.^[8]^[9] This approach aimed to build an ecosystem where technology operates effortlessly in everyday environments, drawing on Rubin's expertise in mobile platforms. Andy Rubin served as CEO, guiding the leadership team.^[10] Essential was headquartered in Palo Alto, California, and assembled an early team of under 100 employees, recruiting talent from established tech companies like Google and Apple to maintain a lean, high-caliber structure focused on rapid innovation.^[2]^[11]

Funding and Operations

Essential Products secured its initial seed funding of $30 million in 2016, led by Redpoint Ventures and Playground Global.^[12] This round was followed by a substantial Series B investment of $300 million in 2017, led by Access Technology Ventures and including prominent backers such as GV (formerly Google Ventures), Amazon, Foxconn, and Tencent.^[12]^[13] Andy Rubin's legacy as the creator of Android played a key role in drawing these high-profile investors to the startup. The combined funding totaled approximately $330 million, providing the capital needed for research, development, and initial production efforts.^[14] Operationally, Essential Products established its headquarters in Palo Alto, California, and grew its workforce to a peak of around 120 employees by 2018, focusing on engineering, design, and product development teams.^[15] The company pursued supply chain partnerships, notably with investor Foxconn, to support manufacturing of premium hardware components using materials like titanium and ceramic.^[12] These collaborations enabled small-scale production emphasizing quality and innovation over mass volume. Essential adopted a direct-to-consumer business model, selling products exclusively through its website to bypass traditional carriers and retailers, thereby retaining control over pricing, software updates, and customer relationships.^[16] This approach targeted a niche premium market, allowing for higher margins and a focus on long-term brand building rather than immediate scale.^[16]

Products and Services

Essential Phone (PH-1)

The Essential Phone (PH-1) was announced on May 30, 2017, and began shipping in the United States on August 25, 2017, with an initial retail price of $699 for the unlocked model. Developed by Essential Products as its flagship hardware debut, the device aimed to deliver a premium Android experience through innovative design and pure software, positioning itself against high-end competitors like the Google Pixel and Samsung Galaxy S8. It featured a distinctive edge-to-edge display with minimal bezels and was the first mainstream smartphone to introduce a notch at the top for the front-facing camera, influencing subsequent industry trends.^[17]^[18]^[19] Key specifications included a titanium frame for strength, a durable ceramic back, a 5.71-inch Quad HD display with 2560x1312 resolution and 19:10 aspect ratio, Qualcomm Snapdragon 835 processor, 4 GB of RAM, 128 GB of internal storage (non-expandable), dual 13-megapixel rear cameras with phase-detection autofocus, an 8-megapixel front camera, and a 3,040 mAh battery supporting Quick Charge 2.0. Design innovations emphasized modularity via a magnetic pogo-pin connector on the side, enabling easy attachment of accessories like the 360° Camera for panoramic photography without cases or adapters. The phone's compact form factor, at 155.4 x 71.1 x 7.8 mm and 185 grams, combined premium materials for water and dust resistance equivalent to IP54, though it lacked wireless charging at launch.^[20]^[19]^[18] Running stock Android 7.1 Nougat at launch, the PH-1 promised near-monthly security updates and major OS upgrades directly from Essential, delivering a bloatware-free experience with timely features like Project Treble support for faster future updates. It received Android 8.0 Oreo shortly after launch and continued with updates up to Android 10, including security patches through February 2020, which was notable for a startup device. The phone integrated with Essential's ecosystem, such as seamless pairing with the Newton Mail app for enhanced productivity.^[21]^[20] The device was produced in limited quantities and sold directly through Essential's website as well as via carrier partnerships, primarily Sprint for subsidized options, while remaining unlocked and compatible with major U.S. networks like AT&T, T-Mobile, and Verizon. No official hardware variants were released, though carrier-specific models included minor software tweaks for Sprint compatibility. Total sales were modest, estimated at around 150,000 units worldwide, with approximately 88,000 sold by the end of 2017, reflecting challenges in gaining market traction despite critical praise for its hardware.^[22]^[23]^[18]

Newton Mail

Newton Mail is a premium email client developed initially by CloudMagic and later acquired and relaunched by Essential Products. Essential purchased CloudMagic, the creator of Newton Mail, in December 2018 for an undisclosed amount, following the app's initial shutdown in September 2018 due to financial challenges.^[24]^[25] Under Essential's ownership, the app was resurrected in February 2019, available for iOS, Android, macOS, Windows, and watchOS platforms, maintaining its subscription-based model at $49.99 per year or $4.99 per month after a 14-day free trial.^[26]^[27] This relaunch emphasized an ad-free, secure experience centered on user privacy and efficiency, positioning Newton as a standalone software product within Essential's ecosystem.^[28] The app's core features included a unified inbox that aggregated emails from multiple accounts such as Gmail, Outlook, and Yahoo, along with gesture-based controls like customizable swipes for archiving, deleting, or snoozing messages to promote minimalism and quick navigation.^[29]^[30] Additional functionalities encompassed read receipts, email recall, send later options, and smart notifications to reduce clutter, all designed to enhance productivity without compromising on a clean, intuitive interface.^[31] Newton integrated seamlessly with the Essential Phone (PH-1) for synchronized notifications across devices.^[26] The service prioritized privacy through secure syncing and end-to-end protection for features like templates and connected apps, appealing to users seeking a premium, distraction-free alternative to free email clients.^[32] Prior to Essential's acquisition, Newton had built a user base of approximately 40,000 paid subscribers, reflecting its appeal among professionals valuing advanced email management.^[25] Under Essential, the relaunch sustained this momentum with ongoing updates, including interface improvements and expanded platform support, though exact subscriber figures during this period were not publicly detailed beyond maintaining a dedicated following of thousands.^[28] However, Essential's broader financial struggles led to the discontinuation of Newton Mail services on April 30, 2020, coinciding with the company's shutdown announcement in February 2020.^[33] Post-shutdown, a small team from Simform and SoFriendly acquired and briefly revived the app in May 2020, preserving its core subscription model and features for existing users. However, the service was discontinued once more on July 31, 2024.^[34]^[35]

Accessories and Concepts

Essential Products developed a range of hardware accessories designed to extend the functionality of its Essential Phone (PH-1) through a modular magnetic attachment system, known as the Click Connector, which was first introduced on the rear of the PH-1.^[36] The company's modular approach aimed to create an extensible ecosystem that allowed users to add capabilities without relying on proprietary locks or traditional ports, drawing inspiration from earlier concepts like Google's Project Ara, which envisioned customizable smartphone hardware to foster innovation and longevity.^[37] This rationale emphasized user-driven upgrades and a open hardware philosophy, enabling seamless integration of add-ons while maintaining a sleek device form factor.^[38] The flagship accessory was the 360° Camera, launched in August 2017 for $199, which magnetically attached to the PH-1 to capture immersive 360-degree photos and 4K video.^[36] Featuring dual 12-megapixel fisheye lenses with f/1.8 apertures, the compact module—measuring just 1.2 inches in diameter—utilized the phone's processing power for real-time stitching and included four microphones for spatial audio recording.^[39] Powered via the Click Connector's accessory pins, it supported live 360-degree streaming without additional cables, positioning it as the world's smallest 4K 360-degree camera at the time.^[40] Other accessories included a wireless charging dock, unveiled in January 2018, which connected magnetically to enable Qi-compatible charging without removing the phone from its case.^[41] Essential also released a 3.5mm headphone jack module in June 2018 to restore analog audio connectivity on the portless PH-1, and planned a high-end audio module for enhanced sound output, though releases remained limited due to the company's focus shifting to core products.^[42] These add-ons demonstrated the modular system's potential for practical extensions, such as power and audio enhancements, but only a handful progressed beyond announcement to market availability.^[43] Beyond released accessories, Essential explored several unmaterialized concepts that reached prototype stages but were ultimately halted amid financial constraints. Project Gem, teased in October 2019 and intended for a 2020 launch, envisioned an ambient computing device with a tall, narrow form factor—measuring approximately 6.4 inches tall by 1.6 inches wide—and integrated AI for contextual interactions via a smart display-like interface.^[44] The prototype featured a custom Android launcher emphasizing widget-based, glanceable information and voice-first controls, aiming to blend phone and smart home functionalities in a non-traditional hardware design.^[45] Similarly, follow-up phone concepts like the PH-2 incorporated advanced camera technology, promising significant improvements over the PH-1's optics through better sensors and computational photography, though these remained in early development without public demos.^[46] These initiatives highlighted Essential's ambition to redefine device ecosystems, but resource limitations prevented full realization.^[23]

Challenges and Closure

Market Reception

The Essential Phone (PH-1), launched in August 2017, received mixed reviews from critics who praised its innovative design and software experience while highlighting several shortcomings. The device was lauded for its nearly bezel-less display, premium titanium and ceramic build, and stock Android interface free of bloatware, earning a 4.0 out of 5 rating from The Verge for its ambitious modular accessory system and overall craftsmanship.^[19] However, it faced criticism for mediocre camera performance lacking stabilization, average battery life that fell short of competitors, and a high $699 price point that struggled to justify its features amid established rivals like Apple's iPhone and Samsung's Galaxy lineup.^[20] PCMag noted its top-notch hardware and pure software as strengths but deemed the unlocked model's cost a barrier in a crowded market.^[18] Commercially, the PH-1 underperformed, with 88,000 units shipped in 2017 according to IDC data, reflecting challenges in gaining traction against dominant brands with robust ecosystems.^[22] Company executives claimed over 100,000 units sold in the first four months.^[47] Overall estimates placed total sales around 150,000 units, hampered by the phone's launch during the iPhone X era, where Apple's September 2017 debut emphasized similar edge-to-edge screens and premium features but backed by a mature app and service ecosystem that Essential lacked. Newton Mail, Essential's privacy-focused email app, garnered positive feedback for its unified inbox, read receipts, and end-to-end encryption options, appealing to users prioritizing data security over mainstream alternatives.^[32] TechRadar awarded it 4 out of 5 stars, commending its cross-platform features at a $50 annual subscription, though the cost drew complaints for feeling excessive compared to free competitors.^[32] Its niche appeal was limited by iOS-specific constraints, such as integration hurdles with native Apple features, leading to user frustrations over usability on that platform despite strong privacy assurances like no location tracking or ads.^[29]^[48] Overall, Essential's products benefited from initial hype tied to founder Andy Rubin's Android legacy, fostering high expectations for disruption, but execution issues like shipping delays and early software glitches eroded consumer trust over time.^[49]^[50]

Shutdown and Aftermath

Essential Products announced its shutdown on February 12, 2020, stating that despite extensive efforts, it had no viable path to deliver its forthcoming Project Gem device to consumers. The decision followed unsuccessful attempts to sell the company over several months, exacerbated by challenging market conditions in the smartphone industry and internal operational difficulties. Poor sales of its earlier products had contributed to ongoing financial strain, ultimately leading to the cessation of all operations.^[51]^[6]^[52] The closure resulted in layoffs affecting all remaining employees, totaling approximately 114 individuals. Essential's intellectual property assets, including patents on display technologies and connector innovations, were inventoried as part of the wind-down process. Andy Rubin, the company's founder, had stepped down as CEO in late 2017 amid personal controversies but continued serving as chairman until the final days of operations.^[53]^[3] In February 2021, Nothing Technologies, founded by former OnePlus executive Carl Pei, acquired Essential's brand rights and trademarks in a non-cash transaction. In June 2025, Pei clarified that the acquisition was primarily to secure the Essential name for potential branding, excluding patents or prototypes, to avoid consumer confusion with the prior failed products. The deal did not include plans to revive the Essential brand, which remained dormant under Nothing's ownership; in September 2025, Nothing announced an AI-native "Essential OS" software platform, but this did not involve brand revival. Legal repercussions from Rubin's 2014 departure from Google persisted into the aftermath, culminating in a $310 million settlement by Alphabet Inc. in September 2020 to resolve a shareholder class-action lawsuit over the handling of sexual misconduct allegations and executive exit packages; no further major litigation or company revivals have occurred as of November 2025.^[54]^[55]^[56]^[57]^[58]

Innovations and Legacy

Technological Contributions

Essential Products developed a proprietary magnetic modular connector system utilizing pogo pins for power transfer and wireless data transfer to facilitate rapid attachment of accessories to their devices, allowing for efficient connections without the need for exposed ports. This innovation enabled modular expansion, such as connecting cameras or charging stands, by leveraging magnetic alignment for secure and user-friendly connections.^[59]^[60] The company's display technology advanced near-bezel-less LCD designs, achieving an edge-to-edge screen with minimal interruptions by integrating front-facing components like the camera into a compact pill-shaped cutout, which helped influence subsequent immersive display implementations across the industry. This approach maximized screen real estate while maintaining functionality for essential sensors and optics.^[59]^[61] In software, the Essential Phone ran a near-stock version of Android, which included early support for gesture navigation following Android 9 Pie updates to enhance fluidity on their hardware. For the Newton Mail application, the team incorporated privacy-focused features, including support for secure authentication and server-side encryption protocols to protect user data during email handling.^[62] Essential's vision for ambient computing centered on interconnected devices orchestrated through AI-driven hubs powered by their Ambient OS, an open-source platform designed to learn user habits, automate interactions, and integrate smart home elements seamlessly—concepts that anticipated later AI-centric ecosystems. This OS aimed to create a cohesive environment where devices communicate proactively via artificial intelligence, reducing user intervention.^[63]^[64] The company's intellectual property efforts resulted in over 100 patent filings, highlighting innovations such as adaptive camera arrays that employ AI and multi-sensor fusion for intelligent image processing and enhanced photography outcomes, as well as durable materials like titanium-ceramic composites for robust device chassis. These patents underscored Essential's focus on advancing hardware integration and material science for future-proof mobile and connected systems.^[65]

Industry Impact

Essential Products' introduction of the PH-1 smartphone in 2017 marked a significant step in smartphone design, featuring one of the first truly edge-to-edge displays with minimal bezels and a modular magnetic connector for accessories, concepts that pushed the industry toward sleeker, more customizable hardware.^[66] This approach influenced subsequent devices by demonstrating viable alternatives to traditional bezel-heavy designs and fixed hardware, encouraging competitors to explore similar aesthetics and expandability. Following Nothing's acquisition of Essential's brand trademarks in 2021, the startup drew inspiration from Essential's designs in its product development, particularly in modular concepts that contributed to the debut of the Nothing Phone (1) in 2022.^[54]^[67] Nothing's CEO Carl Pei later clarified in 2025 that the purchase was focused on the brand name rather than technology or patents, enabling innovations like enhanced accessory integration and distinctive back-panel interfaces that echoed Essential's modular vision.^[68] The company's rapid closure in 2020 underscored critical lessons for hardware startups, particularly the perils of founder-driven operations lacking robust carrier partnerships, which limited distribution and consumer access in a market dominated by subsidized devices.^[51] Essential's struggles also amplified broader conversations around Android ecosystem challenges, including fragmentation in software support and updates for niche devices without major OEM backing, highlighting the barriers small players face in maintaining long-term viability.^[51] Beyond technical contributions, Essential's trajectory served as a cautionary narrative in the post-#MeToo era, with founder Andy Rubin's history of alleged sexual misconduct at Google—resulting in a $90 million exit despite credible investigations—exemplifying accountability gaps for high-profile executives in Silicon Valley.^[7]^[69] The ensuing scrutiny, including Rubin's leave from Essential and the company's shutdown amid ongoing allegations, fueled discussions on ethical leadership and the risks of unchecked power in tech ventures.^[51] As of November 2025, Essential maintains no active product lineup, but its brand legacy continues through Nothing's mid-range Android flagships, which prioritize minimalist designs and clean interfaces. In September 2025, Nothing launched "Essential" as an AI-native platform integrated into Nothing OS 4.0, featuring AI-driven tools like custom app generation via natural language prompts and the Essential Space hub for personalized task organization—echoing Essential Products' original ambient computing vision.^[70]^[71] This enduring influence underscores Essential's role in fostering a legacy of simplicity and modularity amid evolving Android trends toward streamlined, AI-enhanced user experiences.^[56]

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Canary Mail vs Newton: The Comprehensive Guide to Email Clients
Jan 1, 2024 · Canary Mail offers end-to-end encryption, ensuring your emails remain private. Newton also provides robust security but focuses more on ...
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Inside Andy Rubin's Quest to Create an OS for Everything - WIRED
Jul 25, 2017 · Both hook into Ambient OS, Essential's operating system powered by artificial intelligence. Ambient OS is there to scan your data, learn ...
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Andy Rubin says Essential's Ambient OS will be open source, just ...
May 30, 2017 · Andy Rubin says Essential's Ambient OS will be open source, just like Android ... That means that Rubin, who rose to fame in the tech industry for ...
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https://canarymail.io/blog/canary-mail-vs-newton
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Exclusive: this is the Essential Phone | The Verge
May 30, 2017 · It's an incredibly audacious and ambitious project, with an outlandish screen and the beginnings of a modular ecosystem.Missing: industry | Show results with:industry
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Carl Pei says Essential acquisition was all about the patents
Feb 17, 2021 · The newly confirmed Essential IP takeover is certainly intriguing and could potentially lead to some interesting hardware down the line. Click ...Missing: influence | Show results with:influence
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Uber, Google and the long, lingering tail of #MeToo
Oct 26, 2018 · In two tweets on Thursday night, Rubin said the Times' story contained inaccuracies and exaggerations. “Specifically, I never coerced a woman to ...<|separator|>
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Nothing Acquires Essential to Shape Unique Tech Identity
Jun 13, 2025 · ... Essential's intellectual property has directly influenced Nothing's product lineup. Android Authority notes that Pei's focus was less on ...
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Carl Pei finally explains why Nothing bought Essential
Jun 12, 2025 · Nothing's CEO recently opened up about why the company acquired Essential, and it is a lot simpler than many think. It was all about the name.