Creo stops making smartphones in just six months, will focus on OS now

Creo had launched their first and only smartphone, Mark 1 with Fuel OS back in April where the company promised new features with monthly updates and in just 6 months they have stopped production.

The company was backed by Sequoia capital who invested $3 Million in the Indian smartphone brand but now in just a short span of 6 months, they have killed the Mark 1 which is now out of stock on both the company's website and e-commerce partner, Flipkart. According to the report from Tech in Asia, Creo had only sold 1000 units of their smartphone and the company plans to honor warranty.

At the time of launch the company had said they would be launching more smartphones, but for now, they are looking towards building their OS as a platform which Cyanogen failed to do even with their massive following.

Now, Sai Srinivas, Creo CEO says that this was their strategy all along to focus on the OS and not take on the big guns in the smartphone space:

The idea was to build an always evolving OS with new features every month and take this experience to as many people as possible. Right from the start, the plan was to partner with other phone makers in the market. Very soon, you’ll hear about our partnerships in this regard.

Sure, even if this was their plan, they couldn't have predicted the poor response to the Mark 1 with most of the inventory still on shelves or rotting in warehouses.

Creo's Fuel OS has a very small user base and getting enthusiasts onboard would be a tough task. The company would have a tough time finding OEMs that would use their custom skin given the lack of popularity and developer support.

Differentiating smartphones from a software perspective makes sense in an overcrowded market like India where there are more than 150 smartphone brands. But killing the vehicle which showcased their custom OS features within 6 months is hardly going to win Creo any favors. Instead of a full-fledged solution, the company can instead sell modules of their FuelOS like sense - universal search for your phone, Echo - an answering machine built into your smartphone and others. It's the same approach that Cyanogen is following now.

For now, the future of Mango Man turned Creo looks bleak in this crowded segment.

Creo Mark 1 First Impressions

Source: TechInAsia | Image Credit: IBNLive