Here’s a question: How big a write-off will Snap have to take when it inevitably scraps its just-released augmented reality glasses? Since the social media firm unveiled the spectacles on Tuesday, the social media reaction has been, well, derisive. Snap stock, already in the toilet, has fallen further down the sewer pipes, closing Wednesday down 8% to $4.74. #Gadgets
There are three reasons for the scathing reaction. The glasses are (a) insanely expensive at $2,195; (b) way too heavy, weighing 132 grams or 135 gm depending on the model, compared to the Meta Ray-Bans’ 48 gm or 50 gm; and (c) incredibly ugly. Here’s a video of CEO Evan Spiegel wearing them. Enough said.
While some tech reviewers were positive, even they made clear that these aren’t mass-market devices. CNET, for instance, suggested, “Snap’s Specs could end up in art museums, theme parks and pop-up experiences where people can try them out.” Spiegel’s pitch is that the glasses will transform computing, allowing people to look up from their phones. That day may be coming, but not with these glasses.
It’s true that Snap has a jump on rivals like Meta, which is working on similar glasses (and has had a hit with its Ray-Ban smart glasses). But that won’t be worth much if, as seems likely, these glasses fall flat.
Those with a long memory will recall that Snap has gone through this kind of thing before: In 2017, it wrote off $40 million for unsold inventory related to its camera-equipped spectacles.
At that time, Spiegel suggested hardware would be important to Snap “maybe in a decade.” Well, it’s nine years on from when he made that statement, and hardware today appears to be no more important to Snap than it was then. The company remains dependent on advertising, where its business is growing much more slowly than those of rivals, both bigger (like Meta) and smaller (like Pinterest). The new glasses aren’t likely to change that situation.
https://newsroom.snap.com..
