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Andy Rubin the man behind starting a company called Essential Products has been shut down by the former Google executive who worked in Android. All thanks to the ceasing operations of the company. Once called as the leading hardware tech company, it went on to make 330 million USD who was known to create the smartphone operation system called Android. However, the company has remained the one billion networth value group and was even seen struggling a lot. It has now released the premium smartphone in 2017 that failed to sell well in the market but later it had to scrap the plans to make smart speakers.
The company also even was seen dodging by a news that talked about his exit from Google. The tech giant has even paid Andy around 90 million USD as the exit package once the sexual misconduct was found credible on this man which he denied doing the same. In the blog post seen on the company’s website, Essential was seen developing a new handset, but that was not seen a clear path when it comes to delivering the same to the customers. The decision of Essentials to get it shut down in the market also showcases the challenge the company is facing in the market being the startup group.
It remains the fact that unlike any software company, the hardware companies do need a huge capital to sustain as they had to procure additional amount of components and have to maintain a good amount of inventory as well along with the number of products. Some of the startup companies dealing in hardware were also seen breaking up with products including smart home devices like Nest and Fitbit that made the fitness tracker. However, these companies had to be sold out to Google’s parent company Alphabet.
This is because they had to face a lot of challenges in running the business and meeting even several tough challenges. With the reputation of Rubin in the market, Essential got good investment both from the venture capitalists and companies in the market like Hai Precision and Hon to name a few. Even giants like Amazon and Foxconn were seen investing all thanks to the reputation of Rubin in the smartphone industry. The other companies like Access Technology Ventures, Tencent, Redpoint Ventures and the Chinese giants also invested by raising 330 million USD. With all said and done, the company slipped into losses and in a big mess that eventually helped the company to announce its shutdown in the market.