Snap's recent launch of its AR glasses, Specs, has not positively impacted its stock, which fell over 5% following the announcement amid concerns over pricing and market viability.
Snap recently introduced its long-awaited augmented reality glasses, known as Specs, but the product's debut has not been positively received by the market.
The company has seen a decline of 30% in its stock value over the past year. After the launch of Specs, Snap's stock dropped more than 5%, falling from $5.86 per share on Tuesday to a low of $4.83 by Wednesday morning. As of now, the stock has not regained its previous value prior to the announcement of the new product.
A primary concern regarding Snap's smart glasses is their price point, which the company claims will be nearly $2,200 each. This high cost raises questions about the product's appeal to Snap's main user base—teenagers—who are typically not in a financial position to afford such an expensive item, leading to skepticism about the product's profitability.
In an interview with CNBC on Tuesday, Snap's CEO, Evan Spiegel, who wore the new glasses during the discussion, addressed the significant price tag. He suggested that Specs should be considered as a computer, stating that their pricing is comparable to other high-end computers or laptops.
Spiegel further explained that Specs occupies a unique niche in the augmented reality market, positioned between more affordable options like Meta’s Ray-Bans, which offer less computing power, and more expensive devices such as the Apple Vision Pro, which are powerful but bulkier.
He described the Specs as both 'highly wearable' and 'incredibly capable for immersive computing.'
