1 billion dollar smartphone maker went bankrupt.
We are talking about Essential here. Essential made phones and the only one that came to the market was Essential PH-1. They also teased another phone but it will no come to the market yet. The company was founded by one of the Father of Android Andy Rubin.
What was Essential PH-1
The idea was that to have a modular phone with many modules like a 360-degree camera and it came with stock android. On paper, it sounds great to have modules and stock cameras but in reality, it's very different. 3rd party vendors don't want to make accessories for, particularly low volume phone. Modularity adds a lot of Engineering to the device and stock android ads a lot of compatibility issues.
Why were they worth 1 billion dollars.
Normally if you want to build a tech company. You will first create a good product and make it very good and then sell and after that troubleshoot but in Essential case, they skipped the part where they have to make the product better. So when they released it was $750 and will so many imperfections. The Reviewers like MKBHD and UNBOX THERAPY when the made the reviews they did not recommend this to buy at $750. After that Essential dropped their price to very low $200 which is 30% of the original price. Why did this happen? because in the tech sector everything works fast customers don't care to see where a non-popular company is doing after the first impression which was bad. They also bought an email service provider that costs 44$ a month. The provider was doing very badly at the time but they still brought it and try to revive it but accidentally made it worse.