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.
OSOM always had a difficult road, with plans to launch a privacy-focused handset. And much like Essential before it, the company dealt with its own legal struggles — namely a lawsuit filed by a former employee alleging financial mismanagement.
For its part, the company did manage to release a mobile device, though not the first-party phone it had announced. Rather the company lent its technology to a web3-focused device from Solana.
OSOM did manage to bring a product to market under its own name. The OSOM Privacy Cable is effectively a USB cord whose data transfer can be disabled in situations where “juice jackers” might be present.
“The report in Android Authority is correct, OSOM is sadly shutting down. In May of 2024, having no customers for a mobile phone despite concerted efforts, OSOM at the time decided to pivot to a new project,” CEO Jason Keats said in a statement provided to TechCrunch. “OSOM was forced to let go of a number of employees at that time to reduce our burn rate.”
The “new project” would appear to refer to an “AI-powered camera” it planned as a follow-up to its unreleased smartphone. According to initial reports, Keats had attempted to sell the company off to HP, but was unable to strike a deal.
“Unfortunately, given the bleak market climate for fundraising for consumer electronics startups, we were unable to raise a new round,” Keats says. “While some maintenance operations to ensure contractual requirements will proceed, OSOM’s general operations will shut down on September 6.”
