Snapchat is currently having a bit of a rough time, seeing its user base stagnating against an ever-growing Instagram, and now it looks like Spectacles have also started losing their “star power.”
During its second-quarter earnings call, Drew Vallero, Snapchat’s CFO, declared that revenues from “other sources” – prominently led by Spectacles – were down by 35%. Now this may not mean a lot, but it may be revealing of Snapchat‘s overall strategy, when it comes to hardware.
Snapchat had a breakthrough with Spectacles, making POV and technology headsets at a reasonable price, but it hasn’t provided its customer with an exciting update that will preserve the narrative. Still, its price tag is a concern for its target audience, and so is Instagram’s assertive foray into the world of ephemeral content.
Things look difficult for Snapchat, but as Snap Inc. is in talks to acquire a selfie drone manufacturer in China, things may not be so bad. Of course not they aren’t, but here’s an idea: maybe Snapchat should open up to the opportunity to make the content captured through its devices shareable to other platforms as well.