iRobot's demise a warning to U.S. gadget companies

iRobot, founded in 1990 by three MIT roboticists, made robot vacuum cleaners a household staple, but last month it filed for bankruptcy and announced plans to sell itself to the factory. Almost bought by Amazon in 2023, it was held back by financial problems and regulators who blocked that sale, while being outpaced by rivals with better technology.

For current and future iRobot customers, it's important to understand that this is not a shutdown of iRobot. The bankruptcy filing and acquisition do not mean the company is going out of business. Instead, iRobot expects to continue normal operations without the burden of rising debt. The company has stated that its apps will continue to function, warranties and customer service will remain in place, and supply chains and product development efforts are ongoing, with future product releases expected in 2026.

At Engadget, Daniel Cooper writes that the company had three enemies: high-quality competition, its own mistakes, and tariffs. This triplet of troubles has everyone in the business of consumer electronics vulnerable.

iRobot's situation isn't any way unique, and should serve as a warning to every major American technology brand. It's also a lesson in why companies need to deal with existential threats when they have the time and cash to do so. … Remember Fitbit before Google purchased it, happily selling $80 fitness trackers for years until Xiaomi swiped the low-end part of its business for itself. Even if the early MiBands weren't very good, you could buy three for the price of a single Fitbit Charge. Yes, the argument around quality and reliability is important, but it's often not as loud or compelling as a competing product sold for a fraction of the price.

The e-lephant in the room, obviously, is Tesla, flagging as a car company but on fire as a speculative vehicle for future technology that CEO Elon Musk promises will change the world, fast.