Launching a phone company is a remarkably difficult — some even say foolish — thing to do. OSOM Products, a phone startup that rose from the smoldering ashes of Essential in 2020, is closing shop. Android Authority was first to report the news, after gaining access to an internal announcement from CEO Jason Keats.
Challenges Faced by OSOM Products
OSOM always had a difficult road, with plans to launch a privacy-focused handset. Much like Essential before it, the company dealt with legal struggles — including a lawsuit filed by a former employee alleging financial mismanagement.
OSOM Product Launches
Despite its challenges, the company managed to release a mobile device, though not the first-party phone it had announced. Instead, it lent its technology to a web3-focused device from Solana. OSOM also introduced a product under its own name: the OSOM Privacy Cable, a USB cord designed to disable data transfer to protect users from “juice jackers.” Osom is closing its doors this Friday, citing a lack of customer interest in its mobile phones, marking the end of the company’s operations.
CEO’s Statement on Closure
CEO Jason Keats confirmed the closure in a statement, explaining that the company had no customers for its mobile phone despite significant efforts. As a result, in May 2024, OSOM pivoted to a new project and reduced its workforce to lower expenses. This “new project” refers to an AI-powered camera, which was planned as a follow-up to its unreleased smartphone.
Failed Sale and Funding Struggles
Keats reportedly tried to sell the company to HP but couldn’t reach an agreement. He cited the challenging fundraising environment for consumer electronics startups as a reason for OSOM’s shutdown. While some maintenance operations will continue to fulfill contractual obligations, OSOM’s general operations are set to shut down on September 6. Osom is closing its doors this Friday, citing a lack of customer interest in its mobile phones, marking the end of the company’s operations.
