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Hardware's Brutal Week: 3 Firms File Bankruptcy
20 Dec, 2025
Summary
- iRobot, Luminar, and Rad Power Bikes filed for bankruptcy recently.
- Companies faced tariff pressures and supply chain issues.
- The situation signals challenges for hardware startups globally.
The hardware sector experienced a significant downturn recently as three prominent companies—iRobot, Luminar, and Rad Power Bikes—announced bankruptcy filings. Each entity encountered unique challenges, including escalating tariff pressures, ongoing supply chain disruptions, and significant shifts in consumer demand and market dynamics.
These combined failures underscore a broader narrative regarding the difficulties inherent in developing and manufacturing physical products. The current era is marked by heightened global trade tensions and intense price competition from international markets, creating a precarious environment for hardware innovation and scalability.
This spate of bankruptcies acts as a critical cautionary tale for emerging hardware startups. The struggles of companies like the Roomba manufacturer, which was once a potential acquisition target for Amazon, and the e-bike company unable to decouple from its Chinese supply chain, emphasize the vulnerability of hardware ventures.
