The innovative AI Pin, developed by Humane, is facing significant challenges, with returns surpassing sales in the recent quarter. This comes after a lukewarm reception to the unique AI hardware, executive departures, and acquisition talks, adding further pressure to the struggling startup.
The Verge, citing internal sales data, reports that returns of the AI Pin outpaced sales in the quarter ending in August. The number of units remaining in customer hands has reportedly dwindled to approximately 7,000. This has left Humane with over a million dollars worth of returned products. A key issue is the carrier deal with T-Mobile, which prevents the refurbishment and resale of returned devices, unlike traditional phones or laptops.
The Humane Ai Pin.The Humane AI Pin
Humane originally aimed to sell 100,000 units but has reportedly shipped only 10,000. While Humane has challenged The Verge’s report, they haven’t offered further clarification on sales figures or their financial situation. The inability to reassign returned AI Pins due to the T-Mobile partnership presents a major obstacle. Humane is reportedly working on a solution and has not abandoned the returned units.
A Rocky Launch for a Bold Vision
Founded by Apple veterans Imran Chaudhri and Bethany Bongiorno, Humane launched the AI Pin with considerable fanfare. Showcased during a TED Talk and on the fashion runway, the device debuted at a hefty $699 price tag, plus a $24 monthly subscription. The AI Pin aimed to liberate users from their smartphones, utilizing an AI assistant for voice-activated tasks and projecting a screen onto the user’s hand.
A person wearing the Humane AI Pin.A user wearing the Humane AI Pin
Despite impressive demonstrations, the AI Pin’s performance fell short of expectations. Humane subsequently refined the user experience and even upgraded to OpenAI’s GPT-4, a highly conversational and context-aware language model. However, these improvements have not significantly impacted consumer sentiment.
Performance Issues Plague User Experience
Overheating and inadequate battery life have emerged as major concerns. User reviews on Reddit highlight the device’s tendency to overheat after only a few minutes of use, requiring cool-down periods. Other users cite latency issues and inaccurate responses from the AI assistant. These performance problems have contributed to customer dissatisfaction and returns.
An Uncertain Future for Humane
Humane’s future hangs in the balance. Given the current market reception of the AI Pin and similar AI hardware like the Rabbit R1, a second-generation device seems unlikely in the near future. In May, Bloomberg reported that Humane was exploring a potential sale for $750 million to $1 billion, but no deal has materialized. The company continues to navigate high-profile exits and internal restructuring as it struggles to find its footing in a nascent and challenging market. The company’s ability to overcome these hurdles and deliver a compelling AI wearable experience remains to be seen.
