Snapchat takes eye watering profit hit over Spectacles
Written by Ellis Sweetenham on 08 November 2017« Return to Reading Room
When Snapchat introduced Spectacles, there were rumours of them revolutionising social media as we know it. Unfortunately, they did not look far enough ahead into the future which brought a big loss.
On their launch in September 2016, Snapchat Spectacles promised a new way of using the app including being able to record your life as you saw it and upload it for your snap friends to see with a few clicks.
While initially they took off, with a few celebrities publicly using them, unfortunately the hype was short lived.
Made available through pop up vending machines, the glasses would set you back $129. While many tech lovers would not bat an eyelid at this, for the majority they were a bit too expensive for a novelty gadget.
In addition, the quality given by the camera and recording features of the glasses did not match up to a user’s smartphone, rendering them definitely not worth the money and poor quality.
Due to the uninterest, the Spectacles did not catch on, with eye-watering consequences revealed this week.
The less than expected sales caused a $40 million loss to Snap Inc, who are the company behind snapchat.
That is a big hit for a relatively upcoming social media company, especially one who are coming under pressure from other social media platforms to keep up with the original content tv trend.
Time will tell if this hit will affect Snapchat completely or whether it is just a bump in the road in the rise of a social media staple.
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