The rise and fall of Roomba

MIT scientists built a $4 billion robot vacuum empire — then Chinese competitors and blocked regulators handed it to a Chinese manufacturer for $191 million.

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By The Numbers

$4B

peak market valuation

64%

market share at peak

Under 10%

market share before bankruptcy

What They Nailed Early

Created the first affordable robot vacuum at $199 when competitors charged $2,000+. Became culturally iconic — Saturday Night Live, Pepsi commercials. Sold 40 million robots and owned 64% of the market by making household robotics real.

What Changed

Chinese manufacturers entered with better tech (lidar vs. visual mapping), faster product cycles (twice yearly vs. annual), and 20-30% lower prices. Roomba stuck with old technology and struggled to compete. Post-pandemic supply chain chaos hit them harder since they sourced from China but designed in the U.S. Market share collapsed from 64% to under 10%.

Where it Landed

Chapter 11 bankruptcy December 2025. Amazon's $1.7B rescue blocked by EU regulators. Chinese manufacturer Shenzhen Pica bought the debt for $191M and took 100% ownership. Shareholders wiped out. Chinese firms now control 63% of global robot vacuum market.

The Principles

First-mover advantage expires fast. Roomba defined the category but Chinese competitors out-innovated them with better tech at lower prices, collapsing their lead in under a decade.

Supply chain proximity is competitive advantage. Chinese rivals designed, built, and marketed locally while Roomba coordinated across continents — speed and cost gaps became fatal.

Desperate debt destroys options. The 14.3% Carlile loan with spending restrictions boxed Roomba in, ultimately handing control to their Chinese supplier for pennies on the dollar.

Builder's Takeaway

If you're defending a hardware category, watch for:

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Tech refresh cycles — if competitors ship twice as fast, you're already behind

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Supply chain geography — distance from factories means slower iteration and higher costs

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Debt terms in crisis — onerous loans can hand your company to creditors

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