The CEO of Snap Thinks You’ll Pay $2,195 for His New Smart Device: ‘Are We Being Punked?’

Snap is preparing to introduce a pair of $2,195 smart glasses on September 16. CEO Evan Spiegel poured years and significant resources into the glasses, which he is eager to introduce, according to a new report from The Wall Street Journal.

Ahead of the company’s fall product launch, Spiegel appeared on CNBC in June. Sources told the Journal that at least one colleague urged him not to wear the glasses for the entire interview, suggesting he talk about the product rather than wear it on camera throughout the segment. Despite receiving this advice, Spiegel chose to wear the glasses for the whole interview anyway. 

The reaction online was swift. Social media users called the glasses “laughably ugly” and compared them to “3D glasses at an IMAX theater.” “Are we being punked?” one poster asked, per the Journal.

Spiegel has championed the project for years. The Journal reported that Spiegel’s focus on smart glasses has frustrated employees and investors at times, especially as Snap’s share price has struggled. 

His commitment has prompted questions inside the company. According to the Journal, some leaders have raised concerns about how much time Spiegel is devoting to the glasses compared to Snapchat, the company’s core revenue-driver. 

Still, Spiegel views the device as a long-term wager on how AI could reshape people’s relationship with technology. Additionally, some analysts see the smart glasses as a possible long-term way for Snap to reduce its reliance on its flagship app.

A high-stakes test for Snap

Snap’s September debut of its $2,195 Specs glasses will be a critical test of Spiegel’s long-term vision for the company and its ability to find growth opportunities beyond Snapchat. 

The company was once one of social media’s hottest names, but it has struggled to become profitable while facing deep-pocketed rivals such as TikTok and Instagram parent Meta. Meanwhile, Meta is pursuing its own strategy around AI smart glasses, with prices for its Ray-Ban Meta smart glasses starting at $379. Meta has sold more than two million pairs since debuting the glasses in October 2023. 

Snap’s stock has fallen more than 30% this year, and the 15-year-old company has yet to post an annual profit. According to the Journal, over the past three years, it has lost nine million daily users in North America for its core social media app.

Snap has also experienced substantial executive turnover. In the past 18 months, its general counsel, chief financial officer, chief creative officer, chief communications officer and the executive overseeing the smart glasses’ augmented-reality operations have all left.

Snap responds

A Snap spokesperson told the Journal that revenue rose 19% from a year earlier in the latest quarter and that the platform was nearing one billion monthly active users. The spokesperson also said Spiegel’s CNBC interview boosted awareness of the product, while his X following has quadrupled since the appearance.

“We have invested thoughtfully in making computing more human with Specs augmented reality glasses and we are looking forward to sharing more at our September 16th launch event,” the spokesperson said.