Pocket bets on focused AI hardware after smartphone-replacement devices falter

Pocket argues that early AI hardware such as Rabbit, Humane and Friend failed to gain significant traction largely because they tried to replace the smartphone and do too much. In its view, users are more likely to adopt AI that fits into existing workflows than universal features such as ordering food, while narrowly focused products may have stronger product-market fit.

Examples cited include a circular children’s device with a camera, screen and object-finding games, and Stickerbox, which prints a cartoon or sticker after a child gives it a voice prompt. The analysis suggests that more AI-native devices for the real world will emerge, provided they offer a clear function at a clear price.