The Spectacles aren’t moving as quick as they did last year, and now its maker is stuck with hundreds of thousands of units sitting in warehouses.
Snap, according to The Information, ordered a massive number of additional units after experiencing high demand during the holidays in 2016. The hype surrounding the product has since cooled off, leaving unsold inventory to collect dust. With its only hardware product going nowhere, it’s unclear what Snap does next. The company reportedly halted development of a drone as well.
Some of the unsold units are fully assembled while others are in parts.
Just a few weeks ago Snap CEO Evan Spiegel revealed the smart glasses are selling better than Apple’s iPod did fifteen years ago. A specific number wasn’t provided, but he did confirm sales exceeded 150,000 units. That’s not exactly an impressive number considering Snapchat, the device’s companion app, is used by 166 million people on a daily basis.
So, at least today, it doesn’t seem like the Spectacles will ever rise to the popularity of the iPod. Snap just needs to appreciate the good run the device had early on.
When the Spectacles debuted, they were a seriously hot item. Snap sold them through pop-up vending machines spread throughout the world for the first couple months. People were interested because they wanted to find the pop-up vending machines and purchase something that no one else had. Then, in early 2017, Snap started selling the Spectacles online. But the hype already disappeared. The hunt for pop-up venting machines ended, and Snap didn’t heavily promote the Spectacles to drive online sales.
Snap’s future is up in the air. The 150-person team behind hardware doesn’t appear to be working on anything notable. The long-rumored drone is apparently canceled, and augmented reality-based glasses would face the same struggles as what other companies have experienced. This is going on as Snapchat loses users to Instagram, the company’s stock is well below its IPO price, and advertising revenue slumps.
If you were considering the Spectacles, maybe expect a fire sale soon. Snap probably won’t let all of those unsold units sit in warehouses for much longer.