Snap CEO sidesteps Specs preorder questions on Q2 earnings call
When asked about product-market fit, Spiegel said he believes mass-market consumer adoption won't occur until the end of the decade.
Snap CEO Evan Spiegel dodged investor inquiries about demand for the company's upcoming Specs smart glasses during Monday's earnings call, less than a month before the device's launch event. Spiegel explained that while developers and those familiar with the platform appreciate Specs, the wider public will need to try the glasses to understand their value.
The company unveiled Specs in June after a decade of development, with a $2,195 price tag that's significantly higher than competitors like Meta Ray-Ban (starting at $350) and Apple's Vision Pro ($3,500). Investors questioned Spiegel about the financial viability of Snap's strategy, the rationale behind developing the product independently, and how he remains confident in the company's ability to compete with Apple, Meta, and Alphabet.
Spiegel maintained that the long-term potential for developing the next computing platform is "enormous," emphasizing the technical challenges involved in creating Specs as a first mover in this category. When discussing product-market fit, Spiegel indicated that significant consumer adoption may not occur until the end of the decade due to factors such as weight and cost.
However, he believes the company has an advantage in that developers have been building on the Specs platform for several years.
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