From the world's number 1 robot vacuum cleaner company to the brink of bankruptcy

iRobot was once a mainstay in the robotics industry in the US. Photo: Bloomberg .

From the pioneer of the robot vacuum era with Roomba, iRobot is facing many financial difficulties and may declare bankruptcy. Financial report in March showed revenue down 44% compared to the previous year.

The drama began in January when Amazon announced it would not acquire iRobot after facing antitrust scrutiny in Europe and the U.S. Despite launching a slew of new products, iRobot canceled its fourth-quarter earnings call, warning it could go out of business in the next 12 months.

Roomba marked the first time robots were introduced to consumers. Experts say iRobot's disappearance could leave a hole in the US robotics industry.

The first unicorn in the field

iRobot was founded in 1990 by three MIT roboticists, Colin Angle, Helen Greiner, and Rodney Brooks. At that time, the robotics industry was still in its infancy and the company was set up for defense projects.

One of the biggest challenges of the Iraq war was mine clearance, said Hanumant Singh, director of the Master of Science in Robotics program at Northeastern. iRobot’s first robot, called Ariel, moved like a crab and could withstand strong waves.

At the time, Singh explained, the only other option was a torpedo-shaped robot, which was inefficient, making Greiner’s creation a “huge breakthrough.” Startups struggled in the early stages, and it wasn’t until Roomba launched in 2002 that things really started to click.

The company's robots have served the military . Photo: Cnet.

David Barrett, a professor in the MIT Department of Mechanical Engineering and iRobot's 22nd employee, said the Roomba was essentially a “happy accident,” after an industrial floor-cleaning robot project failed to reach the market.

With a design that looked like a “frisbee on wheels,” the company began to wonder if it could break into the consumer market, a path no other robot maker had tried. “iRobot was a unicorn. But the important thing was that it proved for the first time that robots could actually make money,” Barrett said.

Roomba became an icon of modern lifestyle, appearing in movies and media, and was considered the “Tesla of home robotics”. During its growth phase, 40 million units were sold globally, accounting for 60% of the industry market share.

Tom Ryden, CEO of Mass Robotics and one of iRobot’s first employees, said the company grew to become a leader in the field at a time when there was no competition. “We’re an inspirational company,” Ryden said.

Thanks to its technological advancements, iRobot was able to attract the best people. Over time, the company grew rapidly, and many employees came and went to found their own startups.

The Big Gap in the Robotics Field

Since 2015, robot vacuum cleaners have become fully commercialized, with Chinese brands such as Ecovacs, Roborock, Xiaomi entering the market. Their products are cheaper, as well as have more features such as mopping, self-emptying, using AI navigation, integrating smart lasers.

For Amazon, Google, Xiaomi, robot vacuum cleaners are just one link in a complete smarthome ecosystem chain, including smart speakers, cameras, sensors, and air purifiers. In contrast, Roomba still relies on the “independent device” model and believes that users will be loyal to the brand.

Roborock launched a new model with a robotic arm earlier this year. Photo: CNBC.

iRobot continues to overprice its products and is slow to innovate. On the one hand, R&D and marketing costs have increased post-Covid and tariffs imposed in the trade war have been imposed. The company has not been able to move its supply chain to Malaysia or Mexico as planned and is subject to a 25% tariff.

The company also continues to maintain its premium image without diversifying its products and keeping up with trends. According to Mashable , Roomba also often lags behind its competitors in real-world tests.

The company has now reported losses for 12 consecutive quarters. Despite launching new products like its floor-cleaning robot, Roomba sales have been weak as users have switched to Chinese rivals. iRobot has had to cut its workforce by more than 50% compared to 2023, to 541 people, sell many assets and scale back R&D.

Ryden said if iRobot fails, it will leave a huge void in the state’s robotics industry. “A leading robotics company based in Massachusetts will attract people, create excitement, and help the entire community,” he said.

Singh says iRobot has built a community of industrial roboticists, and one of the company's greatest legacies is that the people who have worked there have had a fundamental impact on the world .

Source: https://znews.vn/from-hang-robot-hut-bui-so-1-the-gioi-den-bo-vuc-pha-san-post1598089.html