Why A rough week for hardware companies Is Driving Revenue Growth

Why A rough week for hardware companies Is Driving Revenue Growth

What Is This About?

Overview

Listen on Apple Podcasts Listen on Spotify In just about a week, iRobot, Luminar, and Rad Power Bikes all filed for bankruptcy They’re very different companies — selling Roombas, lidar, and e-bikes, respectively — but as Sean O’Kane, Rebecca Bellan, and I discussed on the episode of the Equity podcast, they faced some similar challenges, including tariff pressures, major deals that fell through, and a failure to establish themselves beyond the products that first made them successful You can read an edited preview of our conversation below, with Sean providing an overview of each filing, Rebecca weighing in on whether she has a Roomba, and me speculating about what the popular narratives about these bankruptcies leave out

Why This Matters

Sean: Rad Power is big for an e-bike company, but small, I think, in most people’s minds, since that’s still a bit of a niche They were founded a long time ago and became popular even before the pandemic, and really were thought of as an industry leader, as far as quality of the bikes that they’re making, pretty good branding and marketing and trying to connect with with customers — which is really hard to find in the world of e-bikes, where most of them are just like alphabet soup companies on Amazon They rode that wave in the pandemic up high as micromobility really took off, and people were really rethinking how they were getting around, they weren’t commuting into the office as much

Key Insights

And we get glimpses of that in the bankruptcy filings

It only shows revenue back three years, but they were pulling in well over $100 million in revenue in 2023 — like $123 million, I think that fell to about $100 [million] last year, and through the bankruptcy this year, they were only at about $63 million, so they were clearly coming down off a pretty big high

Industry Impact

This development is expected to influence the technology industry, highlighting ongoing changes in innovation, competition, and adoption.

Final Thoughts

As the technology landscape continues to evolve, stories like this demonstrate why staying informed is increasingly important.

Why This Matters Right Now

This issue is becoming increasingly important as cost, risk, and long-term impact are drawing attention from businesses and users alike.

Real-World Impact

In real-world scenarios, this development could influence decision-making, technology adoption, and competitive positioning.

Risks and Limitations

Despite its potential, there are concerns related to scalability, security, regulatory challenges, and hidden costs.

Final Thoughts

Understanding this topic early can help readers make informed decisions and prepare for what comes next.


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