Why Roomba "Couldn't Find Its Way Home": The Pitfalls of Smart Appliances Highlighted by iRobot's Bankruptcy

1) Why the Company That Made "Robots Running on the Floor" Commonplace Collapsed

There is a product that turned robotic vacuum cleaners into a "culture" rather than just "home appliances." That product is the Roomba, which debuted in 2002. The name became a common noun, turned into a meme, and even spawned videos of cats riding on it—at the center of all this was iRobot. TechCrunch

However, in December 2025, iRobot filed for Chapter 11 bankruptcy, and after restructuring, the major supplier and lender, Shenzhen PICEA Robotics, will take control. TechCrunch depicted this as a painfully symbolic trajectory of an American company, from a researcher's dream to the kitchen floor, and finally "into the hands of a Chinese supplier." TechCrunch

2) The Beginning of Glory: Born from MIT and the "Cost of Being a Pioneer"

iRobot was founded in 1990 by Rodney Brooks from MIT and his students Colin Angle and Helen Greiner. They brought the robotics philosophy that simple mechanisms can create complex behaviors into homes, eventually reaching a scale that reportedly "sold over 50 million units." TechCrunch

The 2005 IPO and the launch of the venture investment division in 2015. Up to this point, it was a typical "success story." TechCrunch
However, pioneers of this kind always receive a bill. The costs of development, failure, and the "cost of better alternatives rather than imitation" that begins the moment the market matures.

3) Turning Point: The "Illusory Goal" of Amazon's Acquisition (About $1.7 Billion)

In 2022, Amazon announced it would acquire iRobot for about $1.7 billion. If realized, it would have been the fourth-largest acquisition by Amazon at the time, TechCrunch recalls. TechCrunch

However, European authorities were strongly cautious. The issue was not just "privacy." There were competition policy concerns that Amazon might use its massive marketplace to disadvantage and "exclude" competing robotic vacuum cleaners. As a result, the acquisition fell through in January 2024, Amazon paid a $94 million termination fee, CEO Angle resigned, and iRobot was forced into a situation where it had to reduce about 31% of its employees. TechCrunch

At this point, the company's strength took a hit. The prolonged acquisition review created "waiting time," but the robotic vacuum cleaner market does not wait. Competitors continue to add new features, cut prices, and advertise. The moment the "exit" of acquisition disappeared, capital and organization were suddenly pulled back to reality.

4) The Triple Whammy That Gradually Took Effect: Supply Chain, Price Competition, and Cash Flow

As TechCrunch described it as a "slow-motion collapse," the decisive blow was not a single strike. TechCrunch
The broad outline is a triple whammy.

• Supply Chain Disruptions: The supply chain issues since 2021 have pressured performance. TechCrunch

• Low Price × High Functionality Competition: Primarily from Chinese companies, cheaper, faster, and more multifunctional products flooded the market (Reuters explicitly mentions intensified competition with Chinese companies). Reuters

• Cash Flow and Debt: According to Reuters, iRobot took out loans in 2023 for cash flow, and in the subsequent restructuring, Picea acquired 100% of the shares and forgave part of the debt. Reuters

Furthermore, Reuters also touched on the increased costs due to new U.S. tariffs (cases where high tariffs are applied to imports from Vietnam). Reuters
It's closer to the truth to say, "The cost structure and competitive environment changed, but capital and time ran out," rather than "It collapsed because it didn't sell."

5) The Reality of "Supplier Becomes Owner": Who is Picea?

Picea, which takes the lead after restructuring, is explained by The Verge as a company with a significant presence as an ODM (Original Design Manufacturer) of robotic vacuum cleaners. Picea was iRobot's contract manufacturer and acquired iRobot entirely through handling debts (loans and manufacturing fees). The Verge

This is also the "strong point as a story" in this case.
Once it was "an American invention changing the world," but in the end, "those who hold manufacturing and capital hold the fate of the company." The cold truth of the hardware industry was visualized through the symbol of Roomba.

6) What Could Happen to Users: "The Device Works, the Sense of Future Disappears"

iRobot explains that even during bankruptcy proceedings, business will continue, and there will be "no expected disruptions" in app functions, support, and supply chains. TechCrunch

However, TechCrunch cautions that the long-term implications for customers are a different matter. If the cloud stops in the future, while basic operations like starting cleaning and returning home can be done with physical buttons, the "sense of future" features like **scheduled cleaning, room designation, and voice operation (Alexa integration, etc.)** might be lost. TechCrunch

This serves as a lesson for smart appliances in general.
Products whose experiential value is based on the "assumption that services will continue," rather than the "specs at the moment of purchase," see a spike in user anxiety when a company's finances waver.

7) Reactions on Social Media (Summary): Sympathy, Irony, and "Self-Responsibility Theory" Emerge Simultaneously

A broad view of public posts reveals that reactions are generally divided into the following five types (summarized below).

(1) "The Irony of Regulation" Group: Stopped Amazon, Ended Up in China's Hands

On Reddit, posts with the sentiment "The $1.7B acquisition was stopped, but in the end, it goes to a Chinese supplier for 'a song'" were prominent. Reddit
The purpose of regulatory authorities is not "rescuing individual companies" but "maintaining competition," but emotionally, "the result seems twisted," so this debate is likely to drag on.

(2) "iRobot Stagnated" Group: Competitors Are a Different Breed

Similarly, on Reddit, along with experiences of switching from iRobot products to other companies, there are claims that "competitors are technically ahead." Reddit
This is a harsh evaluation of iRobot, but on the other hand, the counterargument that "pioneers bear the initial R&D costs" is often discussed in tandem.

(3) "Subscription Haters" Group: Prioritized Shareholder Value Over Users?

There is also visible backlash against the "subscription route" and "monetization pressure." There is a strong aversion to the very notion of "monthly fees" entering home appliances. Reddit

(4) "Fear of Cloud Dependency" Group: At Worst, It Becomes "Just a Disk"

The point that TechCrunch organized, "the device works, but the sense of future disappears," directly connects to consumer anxiety. TechCrunch
"Appliances whose value shrinks after purchase" directly impact the decision-making for the next purchase.

(5) "Under Chinese Control = Security and Data Concerns" Group

Given that these products handle data close to home layouts and living patterns, there are sensitive reactions to changes in ownership structure. Here, transparency (what data is stored where, how it can be deleted) is crucial in determining trust, rather than definitive statements or fear-mongering.

8) The "Lessons of Hardware Management" Left by iRobot's Fall

This case is not limited to the story of robotic vacuum cleaners. When abstracted, the key points are as follows.

• The longer the wait for acquisition (exit), the more time is lost for product development (the market does not stop). TechCrunch

• When the balance of power with those holding manufacturing and capital collapses, a company's freedom is rapidly narrowed (the reality of suppliers becoming owners). The Verge

• The value of cloud dependency is strong, but "the end point when the service ends" is also part of product design (just operating with physical buttons will not be satisfactory). TechCrunch

Roomba will probably still run on the floor tomorrow. The question is whether it will run as smartly in five years. The "way