Creating augmented reality glasses is described by Evan Spiegel, co-founder and CEO of Snap, as a significant venture, likening it to a “blue ocean strategy” and a bold exploration into new realms.
The challenge of integrating advanced technology, including batteries, into a wearable device is a notable endeavor in tech innovation.
Recently, Snap announced the launch of its fifth generation of Spectacles, marking their first update since 2021.
While the new model weighs heavier and has a limited 45-minute battery life, it effectively merges digital and physical experiences, showcasing impressive engineering prowess.
As Snap grapples with a declining stock price, a tough advertising market, stringent social media regulations, and competition from well-capitalized rivals, questions arise regarding its capacity to navigate these challenges. The company has not revealed its research and development expenditures for the glasses.
Spiegel emphasizes the importance of forward-thinking investments: “I don’t think it’s enough to just execute on the business of today; building the business of tomorrow is crucial.”
Deutsche Bank analysts share this sentiment, asserting that continued investment in innovative products and features will enhance user retention and attract newcomers.
For those unfamiliar, Snapchat is a mobile application enabling users to send photos, videos, and messages known as “snaps,” which vanish after viewing. The appeal lies in its engaging effects, such as filters that enhance images.
This demand for augmented reality (AR) glasses illustrates Snap’s effort to transition its app experiences into the real world. According to the company, the camera holds significant potential to transform how people interact and communicate.
Spiegel articulates a vision for the glasses to facilitate authentic social connections through technology: “Our aim is to create technology that enhances real-world interactions and makes technology feel more intuitive.”
Jamie MacEwan, a telecommunications analyst at Enders Analysis, notes, “The notion of merging entertainment with daily productivity is captivating but remains theoretical, as manufacturers face substantial hurdles. The market needs an affordable, lightweight device with sufficient battery life, compelling applications, and a display that meets practical usability standards.”
MacEwan comments that although the current glasses may not revolutionize the world, they are closer to a viable market solution compared to Apple’s headset.
Spiegel envisions a future where individuals will walk the streets wearing these glasses by the end of this decade.
He acknowledges ongoing improvements in comfort and battery duration, indicating that advancing technology will foster a robust developer ecosystem for diverse applications as the glasses become more accessible.
The company is currently producing a limited batch of several thousand hefty glasses targeted at developers, with intentions to enhance adoption and software capabilities before scaling up production. Snap’s computer vision engineering director, Qi Pan, noted, “We aim to utilize every millimeter of space, ultimately hoping to achieve a form factor similar to standard glasses, but this may take several years.”
Snap is not the only player investing in augmented reality glasses. Meta is set to introduce its own version, codenamed Orion, by the end of the month.
Meta’s CTO, Andrew Bosworth, touted the technology’s potential, describing it as possibly the most advanced in its category.
Despite the failure of Google Glass in the consumer market, Google continues developing AR glasses for commercial use, alongside rumored plans for consumer-focused products. Apple is also reportedly working on AR glasses aimed for a 2027 release as a key part of its long-term strategy for wearable technology.
Other companies in this growing sector include Magic Leap and Niantic.
Snap’s journey has faced numerous obstacles. In 2022, the company announced a narrower focus on Spectacles amid significant layoffs, reducing its workforce by 20 percent, and another 10 percent in early 2023, leaving it with approximately 4,700 employees.
In addition, Snap’s hardware track record is mixed; earlier this year, it was necessary to recall its Pixy flying cameras due to battery issues.
In encouraging news for the UK, the development of the glasses has seen significant contributions from local expertise.
The glasses’ AR displays are engineered by WaveOptics, located near Oxford, a company acquired by Snap for $500 million in 2021, while computer vision software is being developed in London.
In order to evolve these clunky frames into something resembling standard eyewear, considerable miniaturization of components will be required, except for the battery life.
Spiegel, who founded Snap in 2011 with two Stanford classmates, Bobby Murphy and Reggie Brown, reflects on the company’s user base of 850 million monthly active users. Despite being behind TikTok, Facebook, and Instagram, Snap maintains a strong presence among younger audiences, with three-quarters of users aged between 13 and 34 years in over 25 countries.
While Snap faces questions about its competitive positioning, it still enjoys advantages stemming from its youthful demographic; it reports that over 80 percent of its users are over 18.
Advertising continues to be Snap’s primary revenue source, and it is striving to catch up in this area despite being behind its larger competitors.
In the last quarter, Snap reported a revenue increase to $1.24 billion, a 16 percent rise from the previous year, though it incurred a loss of $249 million, showing signs of improvement from a $377 million loss the previous year. In comparison, Meta reported $39 billion in revenue in the same period.
Despite the challenges, Snap aims to sustain its advertising growth while investing in the future. As Spiegel remarked, addressing share price and maintaining investor and employee confidence is crucial. He reiterated the importance of focusing on both current advertising success and long-term business development.
With the augmented reality market still emerging, Spiegel remains optimistic about Snap’s prospects, emphasizing that there is currently no dominant player in AR glasses. He believes their lead in augmented reality positions the company favorably in a developing field.
In that regard, Snap may not feel the pressure to chase its competitors closely.
Futuristic Technology in Spectacles
Inside Snap’s London office, I was shown a confidential box containing the latest Spectacles. The glasses, designed to function in sunlight, are unwieldy, as they house the technology equivalent to two smartphones inside.
When powered on, a menu of applications appears before the user, creating an interactive experience. I engaged with features that taught me how to select items and navigate the environment, all while managing the weight of the glasses after extended use.
This pioneering technology is indeed captivating; however, it’s evident that a long journey remains before these glasses can seamlessly enter the mainstream market.