The Essential Phone, also known as PH-1, has reduced its retail price from $699 to now only $499. That's a $200 price cut just two months after it was first rolled out for shipping.

While it is normal for gadget prices to go down after some time, this amount of reduction in such a short period could mean something is up, or in this case, down.

In a blog post announcing the price cut, Essential said "premium craftsmanship and the latest technologies shouldn't be for the few." This makes it safe to say that the move was done in hopes of boosting the newcomer gadget's poor sales.

"We could have created a massive TV campaign to capture your attention, but we think making it easier for people to get their hands on our first products is a better way to get to know us," said Niccolo de Masi, president of Essential.

To make sure those who purchased the smartphone early will not be disappointed, they will receive a digital gift card worth $200, which can be used to buy other products — like a 360 camera or another phone — from the Essential online shop.

The 5.7-inch screen PH-1 is the first baby from the brand-new billion-dollar start-up company Essential, which was founded by Andy Rubin. He happens to also be the founder of Android, the most popular smartphone operating system in the world. No wonder PH-1 was among the most anticipated phones of the year.

When it was launched, PH-1 received great reviews for its aesthetic design, but its somewhat disappointing camera failed to get the approval of consumers.

It also entered the market with a lot of competition — from the big-named Samsung Galaxy Note 8 and the recent releases Google Pixel 2 and Pixel 2 XL. PH-1's hefty price and relatively unfamiliar name probably pushed consumers to prefer other more known brands.