Humane’s daily returns are outpacing sales

🌈 Abstract

The article discusses the challenges faced by Humane, a startup that released a $699 AI Pin in April 2023, which has seen more returns than purchases since its launch. The article covers the low sales figures, high return rates, and leadership changes at the company, as well as the technical limitations that prevent Humane from refurbishing and reselling returned units.

🙋 Q&A

[01] Overview of Humane's AI Pin Launch and Performance

1. What were the key issues with the Humane AI Pin launch and performance?

• The AI Pin was met with overwhelmingly negative reviews, with critics saying it "just doesn't work"
• Between May and August, more AI Pins were returned than purchased, according to internal sales data
• By June, only around 8,000 units hadn't been returned, and the number fell closer to 7,000 as of the time of reporting
• Humane has brought in just over $9 million in lifetime sales, but around 1,000 purchases were canceled before shipping and over $1 million worth of product has been returned
• Humane had hoped to ship about 100,000 Pins within the first year, but only around 10,000 Pins and accessories have shipped in total

2. What are the technical limitations that prevent Humane from refurbishing and reselling returned units?

• There is a T-Mobile limitation that makes it impossible for Humane to reassign a Pin to a new user once it's been assigned to someone
• Once a Humane Pin is returned, the company has no way to refurbish it, and the Pin becomes e-waste

3. How has Humane's leadership responded to the issues with the AI Pin launch?

• Humane's leadership appears to have ignored some warning signs about their product until well into development, launching the AI Pin despite early feedback from testers describing the product as "disorienting" and "frustrating"
• Humane has since released several software updates to "address user feedback"
• There has been notable turnover in Humane's executive roles, including the departure of the director of customer experience, the VP of engineering, the former CTO, and the head of product engineering

[02] Humane's Financial Situation and Acquisition Rumors

1. What is the financial situation of Humane based on the information provided?

• Humane has raised over $200 million from notable Silicon Valley executives, but the low sales figures of the AI Pin pale in comparison to this
• The article states that Humane's AI Pin and accessories have brought in just over $9 million in lifetime sales, with around 1,000 purchases canceled before shipping and over $1 million worth of product returned

2. What acquisition rumors are mentioned in the article?

• The New York Times reported in June that HP is considering purchasing Humane
• The Information reported last week that Humane is negotiating with its current investors to raise debt, which could later be converted into equity