Amazon Pursued Roomba's Parent Once, But Now The Company's Robot Vacuums Face Heat From Chinese Rivals With AI-Powered Arms
iRobot, once a leader in home robotics, is now facing challenges from Chinese competitors like Roborock and Ecovacs. The company's sales have been declining, raising concerns about its future. iRobot was once considered a potential acquisition target for Amazon. However, it now appears to be struggling to keep up with the competition in the rapidly evolving robotics market.
iRobot Corp Facing Competition from Chinese Competitors
Once a potential acquisition target for Amazon.com, Inc. (AMZN), iRobot Corp (IRBT) — the maker of Roomba — is now playing catch-up to hold its ground against Chinese competitors.
iRobot, the company behind the iconic Roomba vacuum, is facing mounting pressure from Chinese tech manufacturers such as Roborock, Ecovacs, Xiaomi Corporation (XIACY), and Dreame Technology, as reported by Nikkei Asia. Once considered the undisputed leader in the robot vacuum market, iRobot's global market share has dropped from 35% in 2015 to just 22% in 2023, according to Euromonitor.
Competition in the Market
Beijing-based Roborock unveiled a new robot vacuum at CES 2025 featuring an AI-powered arm capable of picking up objects weighing up to 300 grams. The vacuum can recognize 108 objects out of the box, with room to program 50 more via app. In Japan, where Roomba holds a 70% market share, Chinese rivals are rapidly gaining ground. Ecovacs is undercutting Roomba by nearly 30% with comparable features, while Xiaomi is preparing to launch robot vacuums in its new retail stores.
Financial Challenges
On Wednesday, iRobot reported a 44% year-over-year drop in fourth-quarter sales, totaling $172.03 million, surpassing the analyst consensus forecast of $171.00 million. The company revealed significant uncertainty about its ability to sustain operations for at least 12 months following the release of its consolidated 2024 financial statements. Due to these circumstances, it has canceled the fourth-quarter earnings call that was set for March 12, 2025, and is refraining from issuing a financial outlook for 2025 at this time.
Stock Performance
IRBT shares surged 21.11% on Friday, closing at $3.70. However, they dipped 0.27% in after-hours trading at the time of writing. Year-to-date, the stock has declined 53.46%, according to Benzinga Pro data.
Photo Courtesy: DestinaDesign on Shutterstock.com
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next: Bill Gates Would Rather Save Earth Than Colonize Mars — Unlike Elon Musk, Jeff Bezos: ‘I'm Not a Big Mars Person... It's Not a Very Hospitable Place'
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock – anytime. © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.