Snap Spectacles leave firm with $40m loss
Author: Simon Jones
Hybrid eyewear and technology products have been dealt another blow after Tech firm Snap, the company behind Snapchat, revealed it lost $40m (£30m) on its video recording Spectacles after they failed to meet sales projections.
Snap said the losses, reported in Q3 results, related to excess inventory reserves and refunds on cancelled orders. It was estimated that the company had around 300,000 pairs of unsold Spectacles, which cost £129.99 and were sold through vending machines.
‘Because we were so excited, we made the wrong decision,’ said Snap CEO Evan Spiegel. He added that Snap overestimated demand for the glasses, and overbought parts from suppliers.
‘Moving forward, we will continue to be in the market place with Spectacles and expect modest revenue from the product line,’ said Drew Vollero, chief financial officer.
In total, the company’s overall loss in Q3 2017 was $443.2m.