APP CHAP Snap is rumoured to be sitting on ‘hundreds of thousands' of pairs of unsold Snap Spectacles.
Snapchat's owner, not understanding that things don't sell as well after Christmas, is said to have put in an order on the basis that sales would continue at the same rate which it had seen in the run-up to Chrimbletide.
Here's Disco Stu to explain the economics:
According to The Information (paywall), there are some fully assembled, while others are still in bits as the manufacture is halted.
Snapchat has failed to live up to a lot of the hype as the novelty wears off like so many social platforms before it and is still not meeting its advertising targets, a worry after a huge IPO sent share prices rocketing.
In the end, this year saw the company facing a $2.2bn loss.
CEO Evan Spiegel has claimed that there are 150,000 sold pairs of Snapchat specs, but that could pale into insignificance compared to the unsold stock. We're hoping for a fire sale (£129.99 for a gimmick gadget is a lot). It would probably help if they didn't look so stupid on - at least Google Glass tried to make a product that blended in. A bit.
Snap is apparently 150 strong on the hardware side. There has been talk of an official Snapchat drone, but so far we've heard nothing to confirm that it's going ahead, and now that the company has had its fingers burned, it could be a while before we hear about it again.
Snap has also been linked to augmented reality, but given that Microsoft and Google haven't got it right yet, while other companies are hanging back until the technology matures, it doesn't seem likely that its a tangent that Snap can afford to go down right now.
All that said, Speigel believes in playing the long game and has committed to hardware as a part of the Snap offering for the next decade, believing it will take that long to really find its feet. He could well be right.
Weirdly, however, it could be that Snap is looking for the wrong customers. NHS Doctors are reported to be using Snapchat to bypass ageing computer systems when sending confidential patient data. µ
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Sadly that doesn't include offering you a beer
It's like the Hokey Cokey only for the stock market