Snap, the parent company of Snapchat, has revealed that it hugely overestimated the demand for its expensive camera sunglasses.
The company revealed $39.9 million in losses caused by not being able to sell their Snap Spectacles.
It seems that the initial excitement around the idea of merging sunglasses and a camera might have clouded Snap’s decision making at the time. This decision in particular accounted for 9% of Snap’s losses in the last quarter.
Perhaps they can use this news to boost demand for the Spectacles as it has created quite a bit of publicity for the company.
Shares in the firm plunged after Snap reported losses of more than £337m overall. They’ve stated that they will be making the app easier to use and more compatible with certain mobile devices to try and turn things around.
It has also been announced that Tencent, the Chinese company behind the popular messaging platform WeChat, has built a more than 10 per cent stake in Snap which is giving other investments some faith that things could turn around.
The question is, were they a fad that is now dying down or can they revitalise their product?