Snap Loss $ 40 Million Due to Spectacles Many Do not Sell

Snapchat Spectacles
Snap Inc. is reported to have been less favorable over the past few months, supported by earnings reports in the lower third quarter of 2017. The report is also called causing Snap Inc. share prices to drop by nearly 20 percent. In the report, smart glasses work of the company from the United States is claimed to be the culprit of the decline in income. Snap called a loss of nearly US $ 40 million due to Spectacles that failed to sell and culminate piled in the warehouse.

Not only the result of unsold stacks, the losses suffered by the Spectacles division are also caused by the refund obligations Snap Inc. has to pay to consumers who cancel their purchases.

In other words the number of Spectacles purchased by consumers is not as much as Snap Inc.'s predicted unit, and some buyers return the smart glasses.

Detailed information was confirmed last October. The report said it was dealing with a pile of hundreds of thousands of Spectales units that sold as many as 150,000 units, Snapchat sold, according to Snap Inc. CEO Evan Spiegel last month.

Backed by a viral marketing campaign that leverages online timing to uncover the location of a gaming eyewear or the next Snapbot, the product is judged to be not warmly received when it is marketed through the Amazon site and other online shopping sites.