Snap CEO sidesteps Specs preorder questions on Q2 earnings call

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Snap CEO sidesteps Specs preorder questions on Q2 earnings call

Snap CEO Evan Spiegel sidestepped investors’ questions about preorder demand for the company’s long-awaited Specs smart glasses during Monday’s earnings call, just weeks before the device’s September launch event.

“What we’re hearing from folks is really that they want to try Specs,” Spiegel told investors. “It’s obviously a high consideration purchase at $2,195. Obviously, developers and folks who are familiar with the platform really understand it and understand the technical leaps we’ve made with this generation. I think for the broader public and consumers, it’s going to be really important for folks to go hands-on. Our upcoming launch event will be an important sort of starting point for that consumer-oriented journey.”

The company unveiled Specs in June after spending more than a decade developing the device. The wearable’s $2,195 price tag is significantly higher than most Meta Ray-Ban smart glasses, which start at around $350, but lower than Apple’s Vision Pro, which starts at $3,500.

Investors also pressed Spiegel on why he believes Snap’s strategy is financially viable for a company of its size, why it chose to go it alone rather than partner with another company, and what gives him confidence that the company can compete with Apple, Meta, and Alphabet.

Spiegel responded that Snap believes the long-term opportunity to develop the next computing platform is “enormous.”

“I think what some folks maybe don’t understand yet, especially because Specs are so new and we’re really the first mover in this category, is how difficult the product is to execute from a technical perspective,” Spiegel said. “When we started innovating in the social space, we were a late entrant. So, most of the apps at the time, whether it was Facebook or Instagram or Twitter, were already in existence, and we had to really innovate to continue to grow. What’s so unique about this opportunity for us is really that we’re a first mover, and that really plays to our strengths as an innovator.”

When asked about product-market fit, Spiegel said it will likely be closer to the end of the decade before the company sees mass-market consumer adoption.

“I think things, for example, like weight and cost are going to have to come down to see you know unit volumes really meaningfully pick up.” But we do have, I think, a real advantage here in that developers have been building on the Specs platform now for several years.”

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Consumer News Reporter

Aisha is a consumer news reporter at TechCrunch. Prior to joining the publication in 2021, she was a telecom reporter at MobileSyrup. Aisha holds an honours bachelor’s degree from University of Toronto and a master’s degree in journalism from Western University.