Osome is shutting down on Friday as it has ‘no customers for mobile phones’

Starting a phone company is a very difficult task – some even say foolish. OSOM Products, which rose from the smoldering ashes of Essential in 2020, is shutting down. Android Authority first reported the news after it gained access to an internal announcement from CEO Jason Keates.

OSOM has always had a rough road ahead, as it plans to launch a privacy-focused handset. And like Essential before it, the company has had to deal with its own legal struggles – most notably a lawsuit filed by a former employee alleging financial mismanagement.

For its part, the company did manage to release a mobile device, although it was not the first phone it announced. Instead, the company lent its technology to Solana’s Web3-focused device.

OSOM was able to bring a product to market under its own name. The OSOM Privacy Cable is essentially a USB cord whose data transfer can be disabled in situations where “juice jackers” might be present.

“As Android Authority reports, OSOM is sadly shutting down. In May 2024, with no customers for mobile phones despite concerted efforts, OSOM at the time decided to work on a new project,” CEO Jason Keats said in a statement provided to TechCrunch. “OSOM was forced to lay off a number of employees at that time in order to reduce our burn rate.”

The “new project” refers to an “AI-powered camera” that he planned as a follow-up to his unreleased smartphone. According to early reports, Keating had attempted to sell the company to HP but was unable to strike a deal.

“Unfortunately, given the dismal market environment for consumer electronics startups to raise funds, we were unable to raise a new round,” says Keats. “While some maintenance work will continue to ensure contractual requirements are met, OSOM’s normal operations will cease on September 6.”