"The company which popularized robot vacuum cleaners around the world has filed for Chapter 11 bankruptcy. iRobot, makers of the Roomba, has been synonymous with the category since its inception, but its star had dulled in recent years. The company plans to sell its assets to its primary supplier, China's Picea Robotics, in the hope of maintaining its business. Everyone's got a strident opinion as to why iRobot fell from grace."
"Those on the hardware side of the fence say iRobot's refusal to embrace LiDAR for navigation until this year left it behind rivals. Then there's the geopolitical experts, who can point at China's industrial policy, subsidies and favorable regulatory environment compared to the US approach. After all, iRobot's US gear is made in Vietnam, which is now subject to a 46 percent import levy. As reported, that added around $23 million to iRobot's costs and increased the price of its hardware."
iRobot, maker of the Roomba, has filed for Chapter 11 bankruptcy and plans to sell assets to its primary supplier, China's Picea Robotics, to try to maintain operations. Multiple factors contributed: a blocked Amazon acquisition in 2023, delayed adoption of LiDAR navigation, aggressive copycat competition, and geopolitical pressures. Manufacturing in Vietnam triggered a 46 percent import levy that added roughly $23 million in costs and raised hardware prices. The combination of regulatory decisions, strategic missteps, tariffs, and international industrial policy created a perfect storm. The situation warns major American technology brands to address existential threats proactively.
Read at Engadget
Unable to calculate read time
Collection
[
|
...
]