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In clear terms, Break& # 39; s (NYSE: SNAP) The range of portable cameras has been a distracting distraction to this day. Last year, after receiving a staggering $ 40 million in fees due to disappointing demand and too many orders, Snapchat launched second generation eyewear at the start of the year. The updated version was similar, but it included enhanced features such as faster transfer speeds and better quality cameras, but these improvements resulted in a price of $ 20 to $ 150.
Snap has just announced new styles of its second generation eyewear. Here's what investors need to know.
Source of image: Snap.
They look pretty normal, which is a good thing
Snap refines Spectacles' aesthetic design with new styles, making them more accessible and essentially like a pair of discreet sunglasses. The two new styles are black with polarized lenses and are nicknamed "Nico" and "Veronica". According to Snap, they can capture up to 70 videos or hundreds of photos before needing to reload them. Transfers can be done wirelessly and the sunglasses are always water resistant.
Snap adds that this year it will add a new feature to the Snapchat platform that will automatically arrange Snaps taken on Shows to create a highlighted story. Facilitating and facilitating the creation and sharing of content could help boost engagement, which was remarkably mediocre at first. For example, CEO Evan Spiegel's comments last year suggested that Spectacles accounted for only 0.002% of all Snaps in the first quarter of 2017. Snap told TechCrunch that Second Generation Spectacles were 40% more used than first-run models. generation, a lot of what we know about engaging with the first-generation version.
The new eyeglass styles each cost $ 200 and are on sale today.
But will they sell?
Beyond a vague mention last month about "learning a lot" and iterating on the basis of customer feedback, Snap has not really talked about Shows or its material ambitions in recent quarters. The company has begun to disclose "other revenues" in regulatory filings, which are primarily comprised of shows.
|
Metric |
Q1 2018 |
Q2 2018 |
|---|---|---|
|
Other income |
$ 1.5 million |
$ 1.8 million |
Data Source: SEC filings.
The second-generation eyewear was launched in the second quarter, with a slight increase in sales. At $ 130 per pair in the first quarter, this suggests that Snap sold just over 11,500 units. Without knowing the product mix after the second generation launch in the second quarter, Snap sold between 12,000 and 13,800 units. Snap has sold a total of two hundred thousand units to date.
It should also be noted that these two quarters have been significantly lower than in 2017, which was shortly after the launch of First Generation Shows at the end of 2016. Other revenues were $ 8.4 million at Q1 2017 and strategically important for its future as a "camera company", but it still has to prove this argument to investors.
Evan Niu, CFA, has no position on the mentioned actions. The Motley Fool has no position in the stocks mentioned. Motley Fool has a disclosure policy.
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