Snapchat lost $40 million on its unsold spectacles according to the fiscal third-party report 2017.
The camera-equipped sunglasses that snap thought would generate a huge profit, has lost a great amount of money on the same unsold spectacles.
The company said it is “primarily related to excess inventory reserves and inventory purchase commitment cancellation charges.” Customers didn’t buy these spectacles that were being sold online and in vending machines.
When Snapchat started selling its snap spectacles online and in pop-up vending machines and later on Amazon, along with all the hype that was created gave an impression that ‘the famous snap spectacles’ were nothing but a misconception and a miscalculation.
“We may develop future products that are regulated as medical devices by the FDA,” Snap’s filing from its IPO reads. It also aims to “invest heavily in future product innovation.”
However, the spectacles are still available on Snapchat’s official website for $129.99.