Osom Closes Doors Due to Lack of Customers

A phone startup that emerged from the smoldering wreckage of Essential in 2020, OSOM Products, is closing its doors

After obtaining access to an internal announcement from CEO Jason Keats, Android Authority was the first to disclose the news.

Establishing a telecommunications company is exceedingly challenging; some may even argue it is naive.

OSOM has always faced a challenging journey, as it had intended to introduce a handset that prioritized privacy. Like Essential before it, the company encountered legal challenges, including a lawsuit filed by a former employee who alleged financial mismanagement.

The company could issue a mobile device, albeit not the first-party phone it had previously announced. Instead, the company provided its technology to a Solana device designed for web3.

OSOM was able to introduce a product under its name to the market. The OSOM Privacy Cable is essentially a USB cord that can be configured to prevent data transfer in the presence of “juice jackets.”

“The report in Android Authority is accurate; OSOM is regrettably ceasing operations.” In a statement provided to TechCrunch, CEO Jason Keats stated that OSOM decided to pivot to a new project in May 2024 even though they had not yet secured any customers for a mobile phone. “OSOM was compelled to terminate several employees at that time to decrease our burn rate.”

The “new project” seems to reference an “AI-powered camera” that was intended as a follow-up to its unreleased smartphone. According to the initial reports, keats had endeavored to sell the company to HP, but he could not negotiate a contract.

“Regrettably, we were unable to raise a new round due to the unfavorable market climate for fundraising for consumer electronics startups,” Keats says. “On September 6, OSOM’s general operations will cease, even though certain maintenance operations will be conducted to guarantee contractual obligations.”