Report: Snap Muddled with Hundreds of Thousands of Unsold Spectacles
Last fall, Snapchat reorganized itself as Snap, and unveiled Spectacles, a pair of sunglasses that could record and share videos to Snapchat. The Information reports that Snap expected demand for Spectacles to continue after the holidays and ordered “hundreds of thousands” of additional units. Swayed by early adopter responses to limited introductory sales, Snap apparently severely over-estimated the demand for the hardware product, ordering way too many units from manufacturing partners.
Earlier this month, Snap CEO Evan Spiegel said the company had sold “over 150,000 units,” which sounds pretty bad in the context of having hundreds of thousands sitting around waiting to be sold; although The Information says that figure includes unassembled units with parts that could potentially be used in other products.
However, the Information report paints a different picture. Unnamed insiders told the publication that the company was thrown off by the initial demand for Spectacles, which at first were only available at highly-publicized vending machines.
Snap now has a 150-person hardware team, according to The Information, though it isn’t entirely clear what the team is working on.
The company will report its third-quarter earnings Nov. 7. After going public in March, Snap’s stock hasn’t traded above its $17 IPO price since early July.