Snap, a parent company of snapchat has got a lot of buzz for its hardware, the spectacles as a new way that people might choose to use the snapchat app. But from what executives told analysts on a conference call that the augmented reality and camera glass made just a little over $8 million from the total revenue of $150 million during the first quarter of 2017.
The spectacle is priced at $129.99. That means they sold only about 61,500 units of spectacles.
The company’s CEO Evan Spiegel said that over 5 million snaps have been created with spectacles to the time of the conference call. But in total snap saw more than 3 billion snaps taken each day in the first quarter of 2017.
So, looking at these numbers do we feel like the spectacles can drive snap’s revenue, especially now that analysts are getting bearish on the stock? Well it’s possible looking at the demographic that mostly uses the fast growing social media app. Snap has made it very clear that it’s a camera company which means they might know what they are doing as this spectacle is an augmented reality and camera glass. The company has brought a lot to ways that millennials interact with each other which has forced facebook into copying a lot from them. This means if the company is right again and people turn to use its spectacles, it will be a huge potential growth opportunity as other company’s can’t copy it as easy as they did with the snapchat app. Also, the spectacle is only available in the U.S. Which means the right marketing can help Snap boost its sales internationally.
Will investors finally get excited over snap shares because of the company’s spectacles? Well, lets wait and see what happens.