Humane's AI Pin Faces Major Setback as Returns Outpace Sales
Humane, the AI startup founded by former Apple employees, is encountering significant challenges with its flagship product, the AI Pin. Recent reports indicate that daily returns of the $699 wearable device are now exceeding daily sales, raising concerns about the product's viability in the market.
Disappointing Sales and High Return Rates
According to internal data reported by The Verge:
- Humane has shipped approximately 10,000 AI Pins and accessories in four months
- This falls far short of the company's initial goal to ship 100,000 units in the first year
- From May to August, returns outpaced new purchases
- The number of AI Pins still in customers' possession has reportedly dropped to around 7,000
Financial Impact
- Lifetime sales of the AI Pin and its accessories have generated just over $9 million
- Over $1 million worth of products have been returned
- Approximately 1,000 pre-orders were canceled before shipping
Challenges and Criticisms
The AI Pin, marketed as a wearable smartphone alternative, has faced several obstacles:
- Negative reviews from influential tech reviewers, including Marques Brownlee, who called it the worst product I've ever reviewed
- Inability to refurbish or resell returned units, resulting in potential e-waste
- Limitations with carrier partner T-Mobile, preventing reassignment of returned devices to new users
Looking Ahead
The high return rate and low sales figures pose significant challenges for Humane, especially considering the $200 million raised from investors, including notable figures like OpenAI CEO Sam Altman and Salesforce CEO Marc Benioff.
While Humane has disputed some of the reported financial data, the company has not provided specific corrections, stating they do not comment on financial information.
As the wearable AI market continues to evolve, it remains to be seen how Humane will address these setbacks and whether the AI Pin can overcome its initial struggles to find success in the competitive tech landscape.