A year ago, I wrote about Snap Inc.’s announcement of its foray into the wearable technology world with a new product: Spectacles. I addressed the concerns that they were too similar to Google Glass and would flop in the same way, with points that included price, demographics and functionality. I thought all signs pointed to a successful product, but alas, I was mistaken.
Spectacles aren’t doing so well anymore. According to Business Insider, Snap’s internal data indicates that under half of Spectacles owners actually continued to use the product after four weeks. Understandably, the novelty of the product wore off quickly and the juvenile appearance of the glasses made it difficult to assimilate into popular culture.
The fleeting popularity of Spectacles has also contributed to a surplus of the product in storage. A report by The Information states that Snap has “hundreds of thousands” of unsold Spectacles sitting in warehouses. However, Snap’s CEO Evan Spiegel is remaining positive, stating that Snap sold 50,000 more pairs than anticipated. He added, “We’re just sort of beginning to dabble in hardware.”
Even so, Snap’s stock is declining. Investor Place reports that by next week, a loss of 30-32 cents per share is due.
Snap is not all bad news, though. Snapchat advertising is heading in a positive direction, with “a tracked 101% increase in quarterly ad spend among Snapchat advertisers to the end of June.” Additionally, “in less than a month more than 29 million unique US viewers have tuned into NBC News’ new twice-daily Snapchat Show, Stay Tuned,” the first ever daily news program on Snapchat.
It’s hard to tell at this point what all of this means for the future of Snap, but it’s clear at this point that it’s core value still comes from its social platform, not its products.