Snap Spectacles Engagement Is Terrible, but We Already Knew that
It hasn't been a good week of news for Snap (NYSE: SNAP) Spectacles. The Information reported yesterday that Snap has accumulated "hundreds of thousands" of unsold Spectacles after grossly overestimating demand for the product. Regulatory filings also show that Snap has $29 million of additional purchase commitments related to hardware inventory. There's a good chance that Snap will soon have to eat an inventory writedown from overshooting its demand forecast.
Business Insider now reports that Spectacles engagement plummets after about a month of use, citing internal company data. After approximately four weeks, less than half of Spectacles users are still Snapping via the camera-equipped sunglasses. BI's source called the retention rate "shockingly low," and noted that a meaningful proportion of users stop using Spectacles after just one week. A Snap spokesperson wouldn't confirm details of the report, but defended Spectacles by noting that 73% of reviews on Amazon.com were 5 stars.
Image source: Snap.
Source: Fool.com
