People are flipping Humane AI pins faster than Humane can sell them, report finds

According to a report published Wednesday by The Verge, Humane AI Pins were returned faster than they were sold between May and August. The AI ​​gadget released in April received disappointing reviews, and Humane is now reportedly dealing with more than $1 million worth of returned products.

The AI ​​Pin is a badge that offers a host of features, including an AI voice assistant, a camera, and a laser projector, that its creators believe will replace smartphones as the go-to gadget. It costs $700 and requires a $24-per-month subscription, excluding taxes and fees, for cloud storage, cellular data, and a number.

In June, The New York Times, citing two unnamed sources, reported that Humane had sold 10,000 of its AI devices. But today, only 7,000 of those sold have not been returned, The Verge reported yesterday, citing a person “with direct knowledge.” The Verge said it had seen internal sales data showing that returns exceeded device/accessory sales by about $9 million. Internal data also reportedly revealed that 1,000 Pin AI orders were canceled before they were even shipped.

Humane did not respond to Ars Technica’s request for comment. Zoz Cuccias, a spokesperson for the company, told The Verge that The Verge’s report contained inaccuracies, “including financial data.” However, Cuccias declined to share details with the publication, saying Humane had “nothing further to provide as we do not comment on financial data and will refer that to our legal counsel.”

The problem is reportedly compounded by the fact that there is currently no way to refurbish and resell the pins. This would mean that thousands of AI pins are currently being thrown into the trash until the issue is resolved. According to The Verge, the issues stem from the pins’ connection to T-Mobile’s service, which prevents Humane from reassigning returned pins. T-Mobile has not commented on the issue, but an anonymous source told The Verge that Humane is holding onto returned pins in hopes of “eventually” finding a solution.

As a new category of device, there were already concerns that AI gadgets like the AI ​​Pin or the Rabbit R1 would become e-waste. Concerns about device makers’ ability to last and questions about whether these gadgets could be better as apps suggest that even if Humane found a way to repurpose thousands of returned devices, we could still be dealing with a huge pile of obsolete AI Pins.

And there are many reasons to be concerned about Humane’s survival.

Horrible reviews from the start

Humane was hoping to sell about 100,000 units in the device’s first year of sale, an anonymous source told the NYT in June. The alarming sales and returns figures reported by The Verge come after the company’s founders, two former Apple employees, raised $240 million in funding.

As the NYT detailed in June, sources close to the AI ​​Pin claimed that Humane’s co-founders ignored poor internal reviews and pushed the product’s release despite concerns about heat and battery life. In June, Humane warned users against using the AI ​​Pin’s charging case due to a fire risk. Speaking to The Verge this week, Cuccias acknowledged that Humane “knew we were at the starting line, not the finish line” when it released the AI ​​Pin. The company representative noted the software updates that were released in response to the negative feedback.