Andy Rubin co-founded Android and sold it to Google. In 2015, he founded Essential Products to create a premium smartphone. The company raised $330 million from Amazon, Tencent, and Foxconn. The Essential Phone launched in August 2017 to strong reviews for its edge-to-edge display and titanium/ceramic build.
Company Data
- Founded: 2015 — Andy Rubin
- Total Funding: $330 million
- Units Sold: ~150,000
- Failed: February 2020
Then scandal struck. Reports emerged that Rubin had left Google amid sexual misconduct allegations, receiving a $90 million exit package. Carriers pulled back from partnerships. The company sold approximately 150,000 phones—catastrophic for a company with $330 million in funding. A second phone was canceled and the company shut down.
Key Lesson
Founder reputation is part of the product. In consumer markets, personal controversy can kill carrier partnerships and consumer trust overnight.