The biggest AI hardware fails of 2024

The first major consumer tech hardware products focused on AI and mixed reality in 2024 have faced significant challenges in meeting user expectations and market demands.

Initial promise and market positioning: Apple, Humane, and Rabbit each launched ambitious devices aimed at revolutionizing how humans interact with artificial intelligence and digital content.

• Apple Vision Pro entered the market as a premium mixed-reality headset priced at $3,499, targeting professionals and early adopters
• The Humane Ai Pin was marketed as a wearable AI assistant designed to reduce smartphone dependency
• Rabbit’s R1 device promised to simplify AI interactions through a pocket-sized companion

Key performance issues: Each device encountered substantial hurdles that limited their market success and user adoption.

• Apple reduced Vision Pro production targets from 700-800k units to 400-450k units due to limited consumer demand at the premium price point
• Humane’s Ai Pin faced functionality problems at launch, leading to high return rates and safety concerns with its charging case
• The Rabbit R1’s features were constrained by its underlying Android architecture, failing to deliver on many promised capabilities

Recent updates and improvements: Software updates have addressed some initial concerns but haven’t fully resolved core limitations.

• Vision Pro now offers enhanced home screen customization and expanded Mac Virtual Display options
• Humane added Voice Authentication and Personal Voice features to the Ai Pin, though laser display issues persist
• Rabbit introduced new features including Beta Rabbit, LAM Playground, and Teach Mode, but third-party integrations are being discontinued

Market implications: The struggles of these flagship AI hardware products reflect broader challenges in bringing emerging technologies to consumers.

• The high price point of the Vision Pro has limited its accessibility to mainstream consumers
• Integration challenges between hardware and AI capabilities have impacted user experience across all three devices
• Competition from smartphone-based AI assistants has reduced the perceived value of dedicated AI hardware

Looking ahead: While these initial products have stumbled, their launches provide valuable insights for future AI hardware development and market strategy. The experience suggests that successful AI hardware products will need to offer clear value propositions beyond what’s available through existing smartphones while maintaining reasonable price points and reliable functionality.