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The release of Humane’s Ai Pin in April was met with high expectations, but unfortunately, it did not resonate well with consumers and industry experts. Priced at $699, the futuristic wearable powered by artificial intelligence was highly anticipated after being heavily marketed for a year, including prominent showcases at events like Paris Fashion Week. However, the initial reception was far from favorable.
Reviews from gadget experts were scathing, with many describing the Ai Pin as “totally broken” and identifying “glaring flaws.” Some went as far as calling it “the worst product” they had ever evaluated. This negative reception led to a significant blow for Humane, as it struggled to fulfill its sales projections.
Reports have surfaced indicating that Humane, in light of the poor performance of the Ai Pin, is seeking a potential buyer for its AI Pin business. According to The New York Times, discussions have taken place with tech giant HP regarding a possible acquisition. The sale price being discussed reportedly ranges from $750 million to $1 billion.
The challenges faced by Humane became apparent through the Ai Pin’s sales figures. By early April, around the time when devastating reviews of the AI Pin were published, Humane had received an underwhelming 10,000 orders for the device, falling considerably short of its target of 100,000 units to be shipped this year. The interest in the product did not pick up beyond this initial order volume, given the harsh criticism it received from critics and consumers alike.
This turn of events has drawn striking parallels to HP’s previous experience with the acquisition of Palm hardware and its webOS operating system for $1.2 billion in 2010. However, following poor sales, HP discontinued all production and support for Palm the following year, ultimately leading to LG’s ownership of webOS.
The potential acquisition of Humane’s AI Pin business by HP underscores the competitive and challenging nature of the wearable technology market. It serves as a sobering reminder for tech companies of the need to deliver products that resonate with consumers and industry experts, emphasizing the critical role of product development, market research, and consumer feedback.
As Humane evaluates its options and potential sale, it stands as a cautionary tale in the technology industry, reinforcing the importance of understanding market demands and ensuring that innovative products meet the expectations and needs of consumers.
