C_NCENTRATE
C_NCENTRATE
Focused on the emerging side of things; technologies, territories, tools, strategies and ideas. Written by TBD Group (intelligence products, advisory, and events).
SNAP GLASSES DON’T COME WITH A GOOD (USE) CASE
Snap unveiled its fifth-generation Spectacles, positioning augmented reality (AR) at the forefront of its future ambitions (yes, like before). The new glasses, priced at $1,188 annually for developers, offer a more immersive display and extended battery life (see below, the image is not a joke), indicating a commitment to refining AR technology. However, the market remains skeptical about whether Snap can drive mainstream adoption for AR glasses.
Snap’s financial challenges (stock down 50% yoy) have been apparent in recent years. Despite innovative products, the company struggles to compete with rivals like Meta and ByteDance in capturing ad revenue. In response, Snap has turned to AR as a differentiator, hoping that its premium-priced developer-focused hardware will reposition the company as a leader in the AR space. 100% unlikely with the current designs. Snap is completely missing the form factor even for young adults who are more forgiving. Perhaps why Snap decided to target developers rather than consumers, the move indicates a strategic pivot aimed at building a robust ecosystem for future growth.
Comparatively, Meta’s AR and VR products have gained more consumer traction, with Meta Quest leading the charge in affordable virtual reality. Snap’s developer-centric model is more niche, potentially limiting its market reach. Meanwhile, Apple’s foray into spatial computing is more advances, pricey and not exactly flying off the shelves either.
The AR market is still in its early stages, and Snap’s glasses need stronger developer support and more compelling applications to gain wider market acceptance. More so, it needs a reason - a use case or killer app so people want to use these even if the design gets fixed. Previous iterations of Spectacles were met with critical praise but failed to break through to a mass audience. Without a clear use case that resonates with consumers, the latest Spectacles will undoubtedly face similar challenges.
Alongside the hardware developments, Snap has introduced AI-powered video generation tools for creators, attempting to capitalise on the growing role of AI in content creation. TikTok’s success in using AI-driven content recommendation has forced Snap to double down on AI features in its own platform. The simplified interface of Snapchat, combined with new AI lenses, reflects broader trends toward algorithmic content discovery.
Snap is positioning itself as a platform that empowers creators with AI and AR tools, differentiating from competitors that focus more on user consumption. While this creator-first strategy is ambitious, it’s not yet clear if it will shift the company’s fortunes. The developer ecosystem Snap is attempting to cultivate remains in its infancy, and broader consumer appeal still seems elusive.
HAPPENING OCTOBER 17 > ‘THE FUTURE OF…META’
Nick Baughn, Head of Global Agencies will be doing the honours at the next TNN at XCHG Space, Oct 17 @ 8-10am. Coffee and breakfast is on us.
Book your place here / TBD+ members go free, join here.
SO WHAT?
__ DO __ Monitor. Investors, developers, brands and agencies should closely monitor Snap’s AR and AI advancements, particularly its efforts to build an ecosystem around its new Spectacles. For developers, this presents an opportunity to get in early on potentially groundbreaking AR technology, even if the mass adoption isn’t immediate. Creators could also explore Snap’s AI-powered tools to generate unique content, tapping into emerging trends in digital experiences.
__ DON’T __ Assume. These aren’t going mainstream anytime soon. The lack of a clear use case, look, and high price tag indicate that these glasses may remain niche products for the foreseeable future. However, imagining they remain like that would also be a mistake. Once the tech is baked, consumer glasses will follow fast. Meta knows this which is why the pair just announced a long-term partnership.
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