Snap Inc (NYSE:SNAP) Unveils New Spectacles But Faces Premium Pricing Pressures

Snap Inc (NYSE:SNAP) has rolled back the years and resuscitated one of its most important project that failed to gain traction with consumers. The company has carried out a significant upgrade on its fabled V1 Spectacles, as it tries to give them a new try all in pursuit of consumer’s dollars.

Snap V2 Spectacles Feature

The upgraded spectacles have a striking resemblance to the first generation model. The updated design features high definition video capability and will be waterproof. They will also come in three jewel colors of onyx (black), ruby (red) and sapphire (blue).

Snap has also miniaturized the spectacles making them ultra slim and sleek. Taking of photos is now possible as the company designed them for use exclusively with Snapchat. Dual microphones able to reduce wind noise and balance out audio from conversations is another addition. The new spectacles can take an average of 3 seconds to transfer a video to a phone compared to 9 seconds with the previous model. HD video transfer to Snapchat is also possible.

It is still unclear if the new features have what it takes to move the needle in a product that has struggled right from inception. At the time when Snap launched the spectacles, they were seen as cool products. Fast forward consumers taste has significantly changed, raising the question as to whether the company will be able to generate the desired sales.

The success that Snap enjoyed with V1 can mostly be attributed to the marketing campaign it carried out. However, it is highly unlikely it will be able to achieve a similar fate at the new price point.

Snap V2 Premium Pricing

Pricing the spectacles at $150 is another headwind that could hurt the company’s bid to get one of its key products to consumers. Pricing a product that people necessarily don’t need on the high end, is the latest headwind that raises serious doubt about its prospects.

Snap needed to price the spectacles at between $70 and $100 and focused on tightening the experience on the software side if it wanted to give current users a reason to upgrade. It is highly unlikely that people who have been on the fence until now would be willing to spend a premium on an accessory of the kind.

There is no doubt the new glasses are unique and offer high-tech eye ware. However, if history is anything to go by then, Snap might have to rethink its strategy. Google Glass failure to capture the market is an excellent example of how the market remains disconnected with the product

The likes of Snap spectacles were supposed to get consumers comfortable with wearing a computer on their eyes. That has not been the case, raising concerns as to whether they will be hit with the same fate that befell GoPro cameras.