The sales of Snap's Spectacles dwindled by 35 percent in the second quarter of the year, with the company's latest consolidated financial report revealing that its "Other" revenue amounted to $5.4 million over the three-month period ending June 30. With Spectacles being the company's only miscellaneous endeavor at this point in time and sporting a $130 price tag that has yet to see any discounts, it seems that the Venice, Los Angeles-based social media giant managed to only sell approximately 41,500 units of its first wearable in Q2 2017. During the first quarter of the year that also disappointed investors, Snap's "Other" business category recorded a revenue of $8.3 million, suggesting that the firm managed to sell around 64,000 units.
The overall commercial performance of Spectacles may still improve during the current quarter as Snap just recently made the smart sunglasses available on Amazon, in addition to partnering with a number of physical retailers. Likewise, the Snapbot vending machines selling Spectacles only started appearing in Europe in June and are still popping up in a number of major cities on the Old Continent, which is another factor that could help improve the sales figures of Snap's camera-equipped pair of sunglasses. Regardless, the current state of affairs is unlikely to please investors, especially in light of the fact that Snap recently proclaimed itself to be "a camera company," noting how Snapchat is just one aspect of its product vision that's meant to incorporate a wide variety of photography-oriented hardware. Those ambitions are likely what led the firm to acquire Chinese drone maker Zero Robotics for up to $200 million, with insiders recently claiming that this transaction has been concluded and that Snap now officially owns the creator of the Hover selfie drone.
With Snap's shares currently trading for less than half of their IPO value from early March, its co-founders recently pledged not to sell any stock until 2018 in an effort to not devalue the company any further. Investors remain skeptical about the firm's long-term prospects due to the fact that it seemingly isn't growing quickly enough to compensate for the fact that Facebook is successfully copying all of its most popular features while simultaneously committing significant resources to a segment in which it has little experience.