Snap shares fell after the company introduced its consumer augmented reality glasses, Specs, at a price of $2,195. The stock dropped more than 5% following the announcement and remained below its pre-launch level as investors assessed the product’s potential market.
Snap shares traded at $5.86 on Tuesday before falling as low as $4.83 on Wednesday morning. The company’s stock had already declined about 30% over the previous year.
Specs Target High-End Computing Market
Snap has spent more than a decade developing Specs, which combine augmented reality displays, cameras, AI features, and computing hardware in a wearable device. The glasses are available for preorder with a refundable $200 deposit and are expected to ship this fall in the United States, United Kingdom, and France.
At $2,195, Specs cost considerably more than most Ray-Ban Meta smart glasses, which can start at about $350. However, they remain less expensive than Apple’s Vision Pro headset, which starts at $3,499.
Snap CEO Evan Spiegel defended the pricing during an interview with CNBC, describing Specs as a computer rather than a conventional pair of smart glasses.
“The most important way to think of Specs is as a computer, and so they’re comparably priced to other high-end computers or high-end laptops,” Spiegel said.
Specs contain two Qualcomm Snapdragon processors and perform their computing directly on the device, without an external battery pack or processing unit. They offer up to four hours of continuous use, while a charging case extends total battery life to about 20 hours.
Snap Positions Specs Between Glasses and Headsets
Spiegel said Specs occupy a position between lighter AI glasses and larger mixed-reality headsets. Meta’s Ray-Ban products provide fewer computing and display capabilities, while devices such as the Apple Vision Pro offer more processing power in a heavier headset.
Snap describes Specs as wearable glasses capable of immersive computing. They support augmented reality applications, video recording, web browsing, multiplayer experiences, and contextual AI that can answer questions about nearby objects.
The company’s intended early users include developers, studios, and technology enthusiasts rather than only Snapchat’s younger consumer audience. Snap is relying on developers using Lens Studio to create applications and experiences for the device.
Snap has also separated its glasses operation into Specs Inc., a dedicated subsidiary that may seek outside investment. The company continues to invest in the product while managing weaker North American engagement, workforce reductions, and pressure to improve its financial performance.
Featured image credits: PickPik
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