"Each company faces its own mix of tariff pressures, supply chain issues, and shifting markets, but together they tell a larger story about the challenges of building physical products in an era of global trade tensions and cheap overseas competition. From the Roomba maker that almost got acquired by Amazon to the e-bike company that couldn't escape its Chinese supply chain, this week's bankruptcies are a warning sign for hardware startups everywhere."
"The hardware world had a brutal week, with iRobot, Luminar, and Rad Power Bikes all filing for bankruptcy. Today on TechCrunch's Equity podcast, hosts Anthony Ha, Rebecca Bellan, and Sean O'Kane discuss what went wrong for three once-promising hardware companies, plus Amazon's massive OpenAI bet and Trump's new approach to AI regulation. Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod."
iRobot, Luminar, and Rad Power Bikes each filed for bankruptcy after facing tariff pressures, supply-chain issues, and shifting markets. The combinations of global trade tensions and inexpensive overseas competition undermined profitability for physical-product businesses. iRobot nearly reached an acquisition by Amazon before its collapse. Rad Power Bikes remained exposed to vulnerabilities in its Chinese supply chain, contributing to its failure. The bankruptcies illustrate risks inherent to building hardware in a globalized economy. Concurrent developments include Amazon making a large bet on OpenAI and a new approach to AI regulation emerging from the Trump administration.
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