Essential Products Inc., a startup created by Google Inc.’s Android operating system creator Andy Rubin (pictured), is reported to have canceled its plans for a second smartphone, and is instead exploring the possibility of selling itself.

That’s according to Bloomberg, which also reported that any sale is far from set in stone, and Essential is still forging ahead with its plans for future products, people familiar with the matter told Bloomberg.

Even so, whatever products Essential is building are unlikely to include a second smartphone, Bloomberg said. The company, which was first founded on the premise of building a next-generation “future proof” smartphone, has apparently stopped developing its second model and is instead focused on a new smart home product. That could well be a competitor to Amazon.com Inc.’s Echo, something that Essential said it was working on about a year ago.

Essential’s first phone, released last summer, was the subject of massive hype when it first landed, but it quickly became apparent the device wasn’t likely to live up to expectations. The phone didn’t really offer anything that could set it apart from more established models such as Apple Inc.’s iPhone or Samsung Electronics Co. Ltd.’s Galaxy series. Moreover, it was expensive at $700, which doesn’t compare well with cheaper Chinese brands such as the OnePlus that come with similar specifications and features.

The Essential Phone’s standout feature was its modularity, as it came with a magnetic connector that allowed for add-ons to be attached to the device. However, the company only ever built one such add-on, a 360-degree camera that not surprisingly failed to set the world alight.

Essential did at least attract plenty of interest from investors, raising up to $300 million in venture capital funding, but consumers were less than impressed. It’s said that Essential shipped only about 150,000 of its devices in total.

Bloomberg said Essential might yet remain in the smartphone business, albeit with a hands-off approach that would see Apple iPhone manufacturer Hon Hai Precision Industry Co., Ltd., better known as Foxconn, taking care of most of the development work.

As for the reported sale, discussions about this are reportedly still in the exploratory stages. However, Bloomberg said that if a sale does happen, it would likely include everything, including its patents, employees, hardware and ongoing projects.

Essential confirmed that changes are afoot in an email to the media, saying: “We always have multiple products in development at the same time and we embrace canceling some in favor of the ones we think will be bigger hits. We are putting all of our efforts towards our future, game-changing products, which include mobile and home products.”

Rubin himself also confirmed the company is exploring its options in an email to company employees obtained by The Information. “No one (including me at this moment) knows what the best thing for the company will be,” Rubin reportedly wrote.

Photos: Essential