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Why Snap Is Persisting with Spectacles

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Snapchat has launched the second version of Spectacles

On April 26, Snap (SNAP) launched a new version of its video-recording glasses, Spectacles, with a $150 price point. The latest version looks like the first version but is waterproof, can take better-quality photos and videos, and is easier to use.

The new version comes in three colors: onyx, ruby, and sapphire. Snap added another speaker in order to enhance its audio capabilities. The first version of the Spectacle didn’t really catch on, as the company shipped only 220,000 units. The company recorded a one-time loss of $40.0 million due to its unsold inventory of Spectacles.

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Snapchat has a long-term vision for Spectacles

Snapchat’s Spectacles allows users take photos or videos and share them with friends via Snapchat’s app. The move suggests that Snap is willing to persist with its push into hardware as it tries to diversify its revenue streams. In 2017, 97.0% of the company’s revenues came from ads.

Snap has described itself as a camera company, as it realizes that there might come a time when cameras might be used on glasses rather than smartphones. This look ahead may be behind its persistence with Spectacles.

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