Snapchat (NYSE: SNAP) is launching an updated version of Spectacles, glasses with an embedded camera, and says its first version of the smart glasses sold over 220,000 units.
That first version also caused the company to take a nearly $40-million writedown in the third quarter due to excess inventory. But instead of scrapping its hardware unit, the company is pressing ahead.
According to Snapchat Hardware Vice-President Mark Randall, Snap "listened to our customers and our community and incorporated every part of their feedback”.
The new version costs $150 U.S. — or $20 more than the prior version. They come in three new colors (onyx, ruby, and sapphire), are water resistant and can take photos and videos in high definition. Plus the content transfers much faster.
As for the financial shortfall of the first version, the company attributes that to the business model, rather than product popularity. To avoid inventory management issues that proved problematic with version 1.0, when the company sold through specialized vending machines, as well as a range of retailers and Amazon.com, these new glasses will be available only through Spectacles.com.
Randall said Snap is "very committed to hardware" over the long term. With nearly all of the 3.5 billion Snaps captured every day, taken on a phone, the company wants to take a leadership role as camera technology evolves, he said. The company won't share any forecasts for sales.
Randall said it's about "learning and making changes from version one to version two."
Snapchat shares galloped 35 cents, or 2.4%, to $14.89.
