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I don’t see evidence that iRobot vacuums would have been competitive with Chinese ones, simply because the moat does not exist (there is no secret sauce that ma
by lotsofpulp 11mo ago
I don’t see evidence that iRobot vacuums would have been competitive with Chinese ones, simply because the moat does not exist (there is no secret sauce that makes it difficult to make a competing product).
As for the rest of the article, it’s not Wall Street’s fault the government doesn’t pay iRobot enough for research (nor should it).
- 2OEH8eoCRo0 11mo agoAs the article states they were more than vacuums- they also did defense work and research. They gutted that for higher short term gains. Offshoring to China also likely helped China learn to build their own.
- lotsofpulp 11mo agoIf they were getting paid enough for defense work and research, then they would not have gutted it. But the government should do R&D itself anyway.
- 2OEH8eoCRo0 11mo agoYou should try reading the article, it mentions that too.
- lotsofpulp 11mo agoIt only mentions a one sided view presuming an investor’s intentions. There is no numerical analysis on whether or not iRobot’s spending on various efforts was yielding or likely to yield a return.