Smartphone manufacturer Essential will close for the second time – now represented by OSOM

OSOM, the successor to the acclaimed startup Essential founded by ex-Android CEO Andy Rubin, is preparing to cease to exist. This puts the finishing touches on an ambitious project that sought to revolutionize the smartphone market by integrating advanced data protection technologies, user privacy and cryptocurrency functions.

Image source: OSOM

The company, whose name stands for “Out of Sight, Out of Mind,” was founded in 2020, some time after the startup Essential shut down. Jason Keats, the former head of research and development at Essential, along with a group of like-minded colleagues, decided to continue the work of his predecessor.

OSOM positioned itself as a manufacturer of smartphones that prioritize data protection and owner privacy. Their debut product, the OV1 smartphone, was designed with many innovative features. In addition, OSOM has introduced a unique cable that can block unauthorized data transfer when connecting the device to potentially unsafe power supplies or computers.

Until recently, OSOM had ambitious plans to develop the second generation of its OV2 or Saga Two smartphone. However, OSOM’s plans collided with the harsh reality of the highly competitive smartphone market. According to sources within the company, massive staff reductions are expected in the coming days. Only a small group of developers will remain with the company for a short period of time to fulfill obligations to Solana to release the final software update for OV1/Saga. After this, OSOM’s activities are expected to cease completely.

OSOM’s decision to partner with Solana and repurpose the OV1 into the Saga cryptocurrency smartphone was made in 2022, at the peak of the popularity of cryptocurrencies and NFTs. The device had built-in functions for working with many cryptocurrencies and Web3. However, by the time Saga entered the market in 2023, the situation in the crypto industry had changed greatly. The collapse of several major cryptocurrency exchanges and investment firms has led to a significant decline in interest in blockchain technologies among consumers.

The situation took an even more dramatic turn following a recent lawsuit filed against Keats by a former company executive. The lawsuit, which became public last week, makes serious allegations against OSOM’s CEO. It is alleged that Keats abused his position by using company funds for personal gain, including the purchase of two Lamborghinis. Despite Keats’s denial of all charges, the sudden announcement of OSOM’s closure puts things into perspective.

OSOM’s closure, while significant, did not come as a complete surprise to technology sector analysts. The smartphone market has long reached the stage of maturity and it is extremely difficult for new companies, especially small startups, to gain a foothold in it. The situation is especially difficult for US manufacturers such as OSOM, since most US consumers buy smartphones through mobile phone providers. Without established connections with large telecommunications companies, it is difficult to be noticed in the ocean of Samsung and Apple smartphones.