Tuesday in CE: In Wake of Smart Luggage Ban, Bluesmart Shutters Company
Back in December, a handful of major airlines including Delta Air Lines, American Airlines, and Alaska Airlines all started "smart luggage," leaving startup darling Bluesmart in a tough spot.
The crux of the ban could gravitate to the Samsung Galaxy S7 snafu of late 2016 that caused widespread bans from the FAA as batteries began to "explode" on airplanes. However, that is neither here nor there as Bluesmart never suffered such issues and were manufactured differently from the impact prone Galaxy S7.
Either way, the ban has put Bluesmart "in an irreversibly difficult financial and business situation," forcing them to wind down operations after five years. In much the same way an escalator doesn't ever break, it just becomes stairs, Bluesmart luggage can still transport clothes sans-battery, but that clearly isn't enough to keep the company afloat.