A Rough Week for Hardware Companies
It’s been a tough week for hardware companies, with iRobot, Luminar, and Rad Power Bikes all filing for bankruptcy. However, these companies are not alike, and their struggles share some common challenges.
Similar Challenges, Different Companies
Sean O’Kane, Rebecca Bellan, and I discussed these bankruptcies on the Equity podcast, highlighting the tariff pressures, major deals that fell through, and a failure to establish themselves beyond their initial products.
iRobot: A Well-Known Name
iRobot, the maker of Roomba, is a household name, but its struggles are a reminder that even successful companies can face challenges. Meanwhile, Rad Power Bikes and Luminar faced similar issues, including a failure to establish a foothold in their respective markets.
Tariff Pressures and Battery Recalls
Tariff pressures and battery recalls contributed to the downfall of Rad Power Bikes, while iRobot’s struggles with Amazon’s acquisition deal and Luminar’s focus on lidar sensors also played a role. Consequently, these companies were unable to adapt to changing market conditions.
What’s Next for These Companies?
As these companies navigate bankruptcy, it’s essential to consider the larger structural issues that led to their downfall. In addition, the impact of FTC blockings and merger deals on their bottom lines cannot be ignored.
Source: Link
