iRobot filed for bankruptcy after facing increased competition from Chinese robotics firms. The company’s founder, Colin Angle, says the experience taught him a valuable lesson: never underestimate competitors. China’s subsidies to local manufacturers created a “protected market” for competitors, allowing them to grow and innovate faster.
Angle recalls that iRobot once dominated the home robotics market, but new entrants from China, such as Roborock, disrupted its success. Companies like Roborock had an advantage because they benefited from government subsidies, which gave them a head start in the market.
iRobot struggled to keep up with competitors, missing opportunities to innovate and expand its product line. The company’s attempts to acquire Amazon were blocked by regulatory agencies due to concerns over the potential impact on innovation and consumer choice.
Angle believes that iRobot’s experience serves as a cautionary tale for US manufacturers, highlighting the importance of remaining vigilant in the face of global competition.
Source: https://www.businessinsider.com/irobot-ceo-bankruptcy-china-fast-followers-competition-2025-12