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Chronicles

The story behind the story

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Sources: Humane's Ai Pin and accessories have brought in $9M+ in sales and $1M+ worth of product has been returned; ~7,000 Ai Pins are still in customers' hands

The Verge Kylie Robison

Context & Ripple Effects

Humane launched the $699 Ai Pin after five years of development, $240M in funding and an expectation of roughly 100,000 first-year sales, making the reported revenue and installed base a concrete test of that ambitious hardware rollout.

The figures also add detail to reports that the product had only about 10,000 orders by early April and that Humane was pursuing a sale after its rocky launch. The reported returns indicate that shipment volume did not translate cleanly into retained customers.

First-order effects

  • Humane has generated more than $9M from Ai Pin hardware and accessories, but more than $1M of product has been returned, reducing the effective sales base and adding reverse-logistics and support costs.
  • Roughly 7,000 devices remain with customers, leaving Humane with a limited installed base to serve while it evaluates its broader business options.

Second-order effects

  • The sales-and-returns split strengthens the commercial pressure behind Humane's search for a buyer, because a prospective acquirer must value the company against a small retained device base rather than launch receipts alone.
  • Other standalone AI-device makers face a clearer proof burden: early orders are insufficient unless customers keep the product and its service economics can support ongoing support.

Third-order effects

  • If similar products continue to show high return rates, standalone AI hardware is likely to be judged less on novelty and more on durable daily utility, retention and the cost of supporting connected devices.
  • The episode points to a tougher funding and acquisition environment for AI hardware startups whose distribution depends on persuading consumers to add another personal device rather than leveraging an existing platform.

The trend: Consumer AI hardware is moving from launch-hype metrics toward scrutiny of retained users, returns and the economics of supporting a connected installed base.

Discussion

  • @crumbler Casey Newton on threads
    Is that good  —  RE: https://www.threads.net/...
  • @mhoye@mastodon.social @mhoye@mastodon.social on mastodon
    If you remember the Blackberry Bold, basically RIM's attempt answer to the iPhone, you've heard this story before.  —  (The last BBOS phone had a 110% return rate.  Almost everyone who bought one returned it, a bunch of them got sold as inexpensive refurbished models, and almost …
  • @kyliebytes Kylie Robison on x
    Also crazy: Once a Humane Pin is returned, the company has no way to refurbish it, sources with knowledge of the return process confirmed. The Pin becomes e-waste, and Humane doesn't have the opportunity to reclaim the revenue by selling it again. https://www.theverge.com/... [im…
  • @dlberes Damon Beres on x
    Shameful: “Once a Humane Pin is returned, the company has no way to refurbish it, sources with knowledge of the return process confirmed. The Pin becomes e-waste” https://www.theverge.com/...
  • @edzitron Ed Zitron on x
    this story is honestly incredible - not just in how badly the Humane Pin is doing, but how they *can't refurbish any of the returned units." Horrible, wasteful company, terrible product. Bad news all round.
  • @carnage4life Dare Obasanjo on x
    Humane AI Pin's founders trying to stop their past selves from spending $241 million launching an AI device that is now seeing more returns than sales per day. [video]
  • @kyliebytes Kylie Robison on x
    @vibhu But the return rate here between May and August was more than 100%...?
  • @markgurman Mark Gurman on x
    Not surprised. This statement from Humane is completely tone deaf and offensive: “we have nothing else to provide as we do not comment on financial data, and will refer it to our legal counsel.”
  • @ryan_browne_ Ryan Browne on x
    I mean, the fact that not 100% of people haven't returned it after the tidal wave of negative reviews is... pretty astounding. Are the holdouts seeing something the rest of us aren't?
  • @samfbiddle Sam Biddle on x
    This company had a billion dollar valuation
  • @kyliebytes Kylie Robison on x
    SCOOP: I obtained internal sales and return data from Humane, maker of the AI pin, and found daily returns are outpacing sales. As of today, the # of units still in customer hands has fallen to roughly 7,000, Humane has done just over $9 million in lifetime sales, and more than
  • @benbajarin Ben Bajarin on x
    The saying is true, being early in a category is just as bad as being wrong about it. There are sound ideas with AI wearbles, but the market and the technology is far from ready.
  • r/technology r on reddit
    Humane's daily returns are outpacing sales