[goatforce5]

I think the problem is that _everyone has one_.

> The company's meteoric growth trajectory has slowed down in recent years. According to S&P, sales declined by almost 22 per cent in the first quarter of 2023, the seventh consecutive quarterly contraction.

We got one for the house ~4 years ago. It's still working fine, and we don't need to upgrade to one with Bluetooth connectivity or anything like that.

I'm guessing they found the size of their market wasn't infinite.

[karaterobot]

But then why wouldn't the same process result in the bankruptcy of all (relatively) durable goods manufacturers with a limited set of products? For example, why hasn't Vitamix (blenders) or Zwilling (knives) gone into bankruptcy?

Also, I don't think the market for this stuff is ever truly saturated: every day, plenty of people get their first apartment and need to buy appliances. Instant Pot seems similar to other things like microwaves and toasters, which we don't think of as a dead end due to market saturation.

I think the "bought by private equity and wrung dry" explanation makes more sense. Or if not that, perhaps just a poorly run business.

[juve1996]

People use knives a lot more than instant pots. They wear down quite quickly and many just buy new ones instead of sharpening. Vitamix blenders are priced quite high to make up for a lower sales volume.

> Also, I don't think the market for this stuff is ever truly saturated: every day, plenty of people get their first apartment and need to buy appliances. Instant Pot seems similar to other things like microwaves and toasters, which we don't think of as a dead end due to market saturation.

The market for microwaves isn't, because people use them. Outside of that craze, I don't know of anyone who uses their instant pot anymore. It was a fad, PE came in and gutted it. but the fact is, it probably wasn't going to be this huge performer either way.

[BobbyJo]

Isn't that fine though? I mean, if you've created a popular product, and make margin on every sale, why would only making 100 million dollars instead of 400 million dollars in profit push you into bankruptcy?

Did they take out a ton of loans to expand their manufacturing capabilities with out of touch sales projections or something?

[hooverd]

Private equity debt, mostly.

[ksaj]

I would compare that to the bedroom industry. How often do you buy a bedframe or a new dresser? Those businesses are not going out of business, yet the turnover per-household is equally slow.

[_the_inflator]

Yes, no commenter here ever said: I own at least 3 generations of pots. Unlike an iPhone, no one is willing to swap the model.