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Snap Unveils New AR Glasses Amid Struggles in Ad Business

ByHilary Ong

Sep 18, 2024

Snap Unveils New AR Glasses Amid Struggles in Ad Business

Snap on Tuesday, September 17, introduced its fifth-generation augmented reality glasses, Spectacles, designed to overlay digital graphics onto the real world. These glasses are currently only accessible to developers who are willing to pay a monthly subscription fee of $99 for a year. The new Spectacles boast improved digital visuals and run on a revamped operating system called Snap OS.

Snap has also partnered with OpenAI to provide developers with tools for building AI features for the smart glasses.

This announcement comes just days before Meta’s Connect event, where the company is expected to unveil its latest hardware. Both Snap and Meta have been investing heavily in augmented reality technology, but Snap has faced significant challenges in its core advertising business.

Snap’s shares plummeted by over 20% following its latest quarterly results, which revealed weaker-than-expected guidance and revenue. In contrast, Meta reported better-than-expected results and saw its stock price rise.

While Meta’s AR and VR efforts have incurred significant losses, its thriving advertising business has provided it with the financial flexibility to continue these investments. On the other hand, Snap’s hardware ventures have struggled to gain traction.

Snap has previously released multiple versions of its Spectacles, including a flying camera drone called Pixy. However, these products have faced limited success.

Snap CEO Evan Spiegel has focused the company’s hardware efforts on camera technology, aligning with the core Snapchat app and its large user base. However, the long-term viability of Snap’s hardware push remains uncertain, as investors may become less tolerant of the ongoing losses.


Featured Image courtesy of Snap

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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