×
You will be redirected back to your article in seconds

Snap May Have Hundreds of Thousands of Unsold Spectacles (Report)

Snapchat corporate parent Snap Inc. has hundreds of thousands of unsold Spectacles collecting dust in a Chinese warehouse, according to a report from The Information. Swayed by early adopter responses to limited introductory sales, Snap apparently severely over-estimated the demand for the hardware product, ordering way too many units from manufacturing partners.

Snap didn’t immediately respond to a request for comment.

CEO Evan Spiegel revealed at Vanity Fair’s New Establishment Summit earlier this month that Snap had sold more than 150,000 Spectacles since the introduction of the product a little over a year ago. He painted this as a success, and said the company had expected to sell only about 100,000 units in year one, as Apple did when it first introduced the original iPod.

However, the Information report paints a different picture. Unnamed insiders told the publication that the company was thrown off by the initial demand for Spectacles, which at first were only available at highly-publicized vending machines.

But the lines at those Snapbots  didn’t translate to online sales once the product became widely available, and sales have actually been declining: Snap sold fewer than 42,000 units in Q2, following sales of roughly 62,000 units in Q1. The company has since laid off a dozen members of its hardware team.

More Digital

  • Childish Gambino 'Pharos" AR App Launches

    Childish Gambino Releases 'Pharos' AR App for Android Phones

    Childish Gambino is taking his “Pharos” multimedia franchise to a new platform: Donald Glover’s alter ego released a “Pharos” augmented reality (AR) app for Android phones Wednesday morning, with an iOS version forthcoming at a later time. The app allows users to open up an AR portal in their living room (or where ever else [...]

  • How Baobab Studios Made 'Bonfire,' Its

    Baobab’s New VR Film ‘Bonfire’ Puts the Viewer at the Center of the Story

    Baobab Studios, the VR studio known for Pixar-quality animated virtual reality short films like “Invasion!” and “Crow: The Legend,” is back at Tribeca Film Festival this week with a new VR short that puts you at the center of the story — and lets you experience bonding around a campfire a million miles from home. [...]

  • NFL-Sunday-Ticket-DIRECTV

    AT&T CEO Expects DirecTV to Keep NFL Sunday Ticket Exclusively

    AT&T believes it will hang on to DirecTV’s exclusive rights for the NFL Sunday Ticket, even as the league has said it’s considering ending the satellite operator’s exclusivity to extend the out-of-home games package to streaming platforms. “The exclusivity [of Sunday Ticket] should remain as we go forward on DirecTV,” AT&T CEO and chairman Randall [...]

  • Pandora Acquisition Bites Into SiriusXM’s First-Quarter

    Pandora Acquisition Bites Into SiriusXM’s First-Quarter Profits

    SiriusXM today announced first quarter 2019 operating and financial results — the first since the company completed its acquisition of Pandora Media on Feb. 1 — and its quarterly profit was down 44% from the previous year. It attributed that drop to approximately $76 million of acquisition and other costs related to the Pandora deal, a $31 million one-time benefit [...]

  • Movistar+ Announces Ambitious Original Series ‘La

    Movistar+ Announces Ambitious Original Series ‘La Unidad’

    MELILLA, Spain — Spain’s pay TV leader Movistar+ has announced its newest original series, the anti-terrorist police drama-thriller series “La Unidad,” which started filming last week in the small autonomous Spanish community of Melilla, located on the Moroccan coast. One of the biggest international plays to date for Movistar +, the pay TV/SVOD unit of [...]

  • Vice Media

    APOS: Tencent Video, Vice Media Hatch Premium Youth Series for China

    China’s Tencent Video and global studio Vice Media have joined forces to create a premium youth series exploring hype culture. The eight-part series, with episodes of 25 minutes each, will explore a generation obsessed with finding the next big thing. The series, to be produced by Vice Studios, is earmarked for a late 2019 release [...]

  • Avengers EndGame Trailer

    ‘Avengers: Endgame’ Tops Studios’ TV Ad Spending

    In this week’s edition of the Variety Movie Commercial Tracker, powered by TV ad measurement and attribution company iSpot.tv, Marvel claims the top spot in spending with “Avengers: Endgame.” Ads placed for the superhero film had an estimated media value of $6.28 million through Sunday for 927 national ad airings on 39 networks. (Spend figures [...]

More From Our Brands

Access exclusive content