Snap Unveils New AR Glasses: Price and Stock Drop

Snap has officially unveiled its long-awaited next-generation AR (augmented reality) glasses, the Spectacles model, which has been in development for over a decade. However, this technological novelty was not as warmly received by investors as expected. Following the presentation, the company's share price dropped significantly, indicating the market's skepticism regarding the commercial success of the new product. This is reported by Techcrunch.com news reports.

According to ixbt.com, Snap shares fell by more than 5% after the new device was showcased. While the price per share was 5.86 dollars on Tuesday, it dropped to 4.83 dollars by Wednesday morning. It is worth noting that the company's overall financial state over the past year has been unstable — share value has decreased by a total of 30% over the last 12 months.

Pricing and Target Audience

The primary concern for experts and investors is the excessive cost of the Spectacles glasses. The company has priced the gadget at nearly 2200 dollars. This price is too high for teenagers and young adults, who are the primary users of the Snap platform. Observers believe that such a high-pricing strategy could hinder the product's mass adoption and the growth of company revenue.

Snap CEO Evan Spiegel defended the product's price in an interview with CNBC. According to him, Spectacles is not just a pair of glasses, but a full-fledged computer. "This device should be viewed as a computer, which is why its price is set at the same level as high-end laptops or computers," Spiegel explained.

Market Competition and Positioning

Comparing his product with other devices on the market, Evan Spiegel emphasized that Spectacles occupies a unique position. In his view, the new glasses are more powerful than Meta's Ray-Ban smart glasses, but more compact and comfortable than the Apple Vision Pro headset. While the Meta device is cheaper, it has lower computing power, and the Apple product is very powerful but heavy and expensive.

The Snap head stressed that the new Spectacles model is both comfortable to wear and powerful enough for immersive computing technologies. Nevertheless, market analysts predict that a 2200-dollar gadget will struggle to find its place in the mass consumer market. For now, investors are waiting to see how this innovative step by Snap will impact financial results.