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Apple Earnings Threat Could Be Driving Factor Between Android Founder's Failed Deal With Investor

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    Technology Technology Mar 22, 2017 05:04 PM EDT

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    The Apple earnings amount will certainly be at risk if a new smartphone company arises, which might be the reasoning behind the Android founder's failed investment deal. Android co-founder Andy Rubin was planning to release a high-end smartphone that could rival the likes of Apple.

    Rubin was supposed to seal a $100 billion funding deal with SoftBank CEO Masayoshi Son. However, recent Apple earnings led to the tech company to invest $1 billion into Son's Vision Fund Investment group.

    This investment might have strengthened the relationship between Apple and SoftBank. In turn, this could have led Son into deciding not to invest into Rubin's startup company Essential. According to Android Authority, the reason Son backed out of funding Essential was mainly due to conflict of interest.

    Sources indicate that SoftBank would have made Essential smartphones a hit in Japan, if the deal between them and Rubin had followed through. Since that wasn't the case, the Apple earnings this year won't be placed at the risk of getting left behind by a potential rival such as Essential.

    According to Patently Apple, this is just another case of power play between Apple and the rest of its competitors. Essential would've left a dent on the Apple earnings, if it were to materialize.

    Sensing this possible scenario, Apple could have cleverly avoided an imminent threat to their business by taking the competition out of the picture. By investing into the Vision Fund Group, Apple managed to win over SoftBank's favor. While the Apple earnings might feel more secured because of that, Rubin's smartphone project Essential is having trouble finding its footing.

    Sources indicate that Rubin's Essential smartphones feature some advanced and innovative tech such as having an end-to-end display. Essentials would have made Android devices one step closer to taking over the Apple earnings in the smartphone market.

    It looks like Rubin will have to look elsewhere when it comes to getting some financial back-up in his startup project. As for now, Apple is winning this tech squabble, as they expect to see the Apple earnings rise by the end of this year.  

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