14 DAY TRIAL // Earlier this year, we revealed that Android’s co-founder Andy Rubin started working on a premium bezel-less smartphone that would run the mobile operating system that he helped create. However, Andy Rubin’s startup company Essential Products has hit a road bump.
Japan-based Softbank has reportedly decided against investing $100 million in Essential, after the deal was in the works for months and even final investment contracts were drafted. Softbank was thought to help Rubin sell its smartphone in Japan, but the company apparently decided that this wasn’t a good idea.
The Wall Street Journal cited unnamed sources that claimed Softbank was worried about a possible conflict of interest. Apparently, Softbank’s CEO Masayoshi Son intends to launch Vision Fund investment group later this year and Apple wishes to contribute to the fund with $1 billion. The report says that Softbank’s investment in Essential would affect the company’s deal with Apple.
Rubin was planning a premium smartphone
There’s another possibility that must be taken into account. Softbank bought ARM a few months ago and it’s possible that Son didn’t wish to come in conflict with other companies that use ARM-based processors, including Samsung and LG, by contributing to the development of a potential rival premium smartphone.
Andy Rubin’s plans for an Android-running smartphone surfaced early this year, suggesting that Essential was working on a premium phone with a display larger than 5.5 inches, ceramic back and metal edges. There was also talk of a modular design, somewhat similar to Lenovo’s Moto Z series.
Moreover, Rubin had already recruited a team of 40 people from Apple and Google to work at the company, and attended CES 2017 to discuss new products with executives from multiple US carriers, including Sprint.
Rubin wanted to develop a proprietary connector that would charge the phone’s battery and enhance its functionality, while adding an accessory sphere camera for high-res 360-degree phones. Rubin’s smartphone was intended to compete against Google’s Pixel, Apple’s iPhone and Samsung’s Galaxy S phones, but it remains to be seen if he will find financing to continue the project.