Facepalm: In a classic example of why you should never think things can't get any worse, Humane, maker of the much-maligned Ai Pin, is now dealing with a situation where so many people are returning the wearable devices every day that they are outpacing sales.
There was so much hype before the Ai Pin's launch that Humane managed to secure $240 million from investors including OpenAI CEO Sam Altman. The company was valued at a massive $850 million last year, but that was before its first product arrived.
The Ai Pin, a screenless, square device that can be attached to clothing and acts, or tries to act, like a smartphone of sorts, arrived with a $700 price and a $24 per month subscription. The required financial commitment and the fact it doesn't work half the time, is slow, runs hot, and has a short battery life, led to scathing reviews, including one from tech tuber Marques Brownlee, who called it the worst product he's ever reviewed.
According to internal sales data obtained by The Verge, between May and August, more AI Pins were returned than purchased. By June, only 8,000 sold units hadn't been returned. Today, that number is said to be closer to 7,000. That means out of the 10,000 sold, 3,000 have now been returned. According to the publication's figures, $1 million worth of product has been returned, compared to $9 million worth of lifetime sales of the Ai Pins, accessories, and subscriptions.
Once the AI Pins are returned, they cannot be refurbished and resold, as T-Mobile makes it impossible for Humane to reassign an Ai Pin to a new user once it's been assigned to someone else.
Before the Ai Pin launched, Humane said it was hoping to sell 100,000 units in the first year. That target started looking like a fantasy after the first reviews arrived, causing 1,000 people to cancel their pre-orders.
Zoz Cuccias, a spokesperson for Humane, said there were inaccuracies in The Verge's reporting, "including the financial data." When asked about the specifics, Cuccias said, "we have nothing else to provide as we do not comment on financial data, and will refer it to our legal counsel."
Not only has Humane had to deal with poor reviews, but it also told buyers in June that they should stop using the included charging case, as it may pose a fire risk.
In May, it was reported that Humane was seeking a buyer willing to pay $750 million to $1 billion for the firm, something HP is reportedly considering. The company is also said to be negotiating with current investors to raise debt that could later be converted into equity.