Snapchat Spectacles may not become the next big thing or a significant revenue driver for Snap Inc after all. Ok, nobody really thought sunglasses worth $130 each would be driving the company’s revenue soon, but after revealing its Q2 results it has become clear that Spectacles are doing worse than previously thought.
Whilst Snap Inc generated $8.3 million in ‘Other’ revenue in Q1, it only generated $5.4 million within the same category in Q2.
That would equate to 64,000 pairs in Q1 and 41,500 pairs in Q2, signifying a drop in Spectacle sales.
The company recently put up its Spectacles for sale on Amazon and across a number of other retailers such as Harrods. Hence, sales may still pick up for the third quarter. In addition, the product has been rolled out across Europe this summer.
However, Snap’s journey into the wearables market may not take off the way the company had hoped. Unless the company significantly revamps the Spectacles to feature AI or other capabilities, it is unlikely that Snapchat can continue momentum post-Q3.
Indeed, there have been reports early this year that the company may be working on a second version of the glasses to include extended features. However, it faces the challenge of correctly identifying consumer interest. Maybe the public just isn’t ready for artificial intelligence packed into a Spectacle? Additionally, the price tag would significantly increase.