Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Snapchat Releases First Hardware Product, Spectacles

wsj.com

Post reply on HN
Print view View original

51–60 of 342 posts

Re: Snapchat Releases First Hardware Product, Spectacles

#51

Post by sloanesturz »

sheer_horror wrote: post #45
ftrflyr wrote: post #39

Why? You need to seriously question the motives behind such a launch. IMHO: [1]Snapshot is an online multimedia application. [2]The infrastructure required to move from online to hardware requires significant investment (beyond the $1.8B they recently raised) - that of which I don't believe Snapchat can fund without a serious re-monetiziation strategy beyond Ads. It is only a matter of time before FB makes the move i…

If Snapchat is able to sell this product to only 5% of their 150M userbase that's 7.5M * $130 = 1B in revenue. Then they diversify their future product line somehow and keep selling to the other 95% of their users. Forget a re-monetization strategy for ads - ads make a product worse and it is refreshing that there may be another way for VC-backed companies to monetize.

How much of their userbase of 13-30 year olds wants to plunk down $130 for a toy? Less than 5%, I'd guess.

Re: Snapchat Releases First Hardware Product, Spectacles

#52

Post by nxc18 »

mikoR wrote: post #50
sheer_horror wrote: post #30

Earlier quoted context omitted.

These glasses are going to be a huge hit thanks to their style. The main userbase of snapchat are product-hungy 12-25 year olds without much conviction; they'll jump at the chance to get a product that looks cool and represents their favourite timesink. I am very impressed with this move because it gives Snapchat a supplement to ad-based revenue. I hope this makes them a lot of money.

The above three comments to me summerise what has qualified as American Innovation for the last 15-20 years. When you are surrounded by the superficial, building things for the superficial what else can you produce other than the superficial. It is sad as hell to watch. It isn't ironic to me that Trump is going to be leading this bunch of innovators soon.

An alternative way of thinking about this is that we're fortunate that our needs are so well provided for that we can focus on entertainment and life enrichment.

A camera at eye level is extremely useful for many reasons, snapchat is just one, excellent use case. In my own life, I have a use for that specific tool, and am glad it exists - Google Glass was never widely released. And the price is great - at $129 this seems amazingly affordable.

I expect it to be a hit.

Re: Snapchat Releases First Hardware Product, Spectacles

#53

Post by ekianjo »

nxc18 wrote: post #52
mikoR wrote: post #50

Earlier quoted context omitted.

The above three comments to me summerise what has qualified as American Innovation for the last 15-20 years. When you are surrounded by the superficial, building things for the superficial what else can you produce other than the superficial. It is sad as hell to watch. It isn't ironic to me that Trump is going to be leading this bunch of innovators soon.

An alternative way of thinking about this is that we're fortunate that our needs are so well provided for that we can focus on entertainment and life enrichment. A camera at eye level is extremely useful for many reasons, snapchat is just one, excellent use case. In my own life, I have a use for that specific tool, and am glad it exists - Google Glass was never widely released. And the price is great - at $129 this s…

> life enrichment

Is this really what this product does?

Re: Snapchat Releases First Hardware Product, Spectacles

#54

Post by supercoder »

sloanesturz wrote: post #51
sheer_horror wrote: post #45

Earlier quoted context omitted.

If Snapchat is able to sell this product to only 5% of their 150M userbase that's 7.5M * $130 = 1B in revenue. Then they diversify their future product line somehow and keep selling to the other 95% of their users. Forget a re-monetization strategy for ads - ads make a product worse and it is refreshing that there may be another way for VC-backed companies to monetize.

How much of their userbase of 13-30 year olds wants to plunk down $130 for a toy? Less than 5%, I'd guess.

.005 if lucky

Re: Snapchat Releases First Hardware Product, Spectacles

#55

Post by Retra »

sheer_horror wrote: post #45
ftrflyr wrote: post #39

Why? You need to seriously question the motives behind such a launch. IMHO: [1]Snapshot is an online multimedia application. [2]The infrastructure required to move from online to hardware requires significant investment (beyond the $1.8B they recently raised) - that of which I don't believe Snapchat can fund without a serious re-monetiziation strategy beyond Ads. It is only a matter of time before FB makes the move i…

If Snapchat is able to sell this product to only 5% of their 150M userbase that's 7.5M * $130 = 1B in revenue. Then they diversify their future product line somehow and keep selling to the other 95% of their users. Forget a re-monetization strategy for ads - ads make a product worse and it is refreshing that there may be another way for VC-backed companies to monetize.

Snapchat only has a userbase because it's an application that runs on a cell phone.

Re: Snapchat Releases First Hardware Product, Spectacles

#56

Post by CodeWriter23 »

mozumder wrote: post #17
potatoyogurt wrote: post #10

Earlier quoted context omitted.

It also doesn't look nearly as dorky as Google Glass did. Google Glass had the problem where it was trying to be an all-purpose life-enhancing thing that people would wear all the time, so it was trying to be both invisible and distinctive. This doesn't need to pretend to be something that you can forget you're wearing or something that you can pair with any type of outfit -- it has a strong sense of style, and it's…

This is a dead-end product. People aren't going to wear this, because they don't want to creep out people by having a camera pointed at them all the time. This was the real problem with Google Glass. Also, everyone already carries around a camera in their smartphone. They aren't going to add another.

Glass was creepy because someone wrote that extension to allow you to start recording by blinking your eyes. This is apples to oranges.

Re: Snapchat Releases First Hardware Product, Spectacles

#57

Post by ftrflyr »

sheer_horror wrote: post #45
ftrflyr wrote: post #39

Why? You need to seriously question the motives behind such a launch. IMHO: [1]Snapshot is an online multimedia application. [2]The infrastructure required to move from online to hardware requires significant investment (beyond the $1.8B they recently raised) - that of which I don't believe Snapchat can fund without a serious re-monetiziation strategy beyond Ads. It is only a matter of time before FB makes the move i…

If Snapchat is able to sell this product to only 5% of their 150M userbase that's 7.5M * $130 = 1B in revenue. Then they diversify their future product line somehow and keep selling to the other 95% of their users. Forget a re-monetization strategy for ads - ads make a product worse and it is refreshing that there may be another way for VC-backed companies to monetize.

Devils advocate here. You overlooking quite a few things. Realistically, let's break some things down:

Background: Google Glass

Cost: $1,500 for early adopters (irrelevant) Cost to Manufacture: ~$100 USD Sale Price: $299 Margin: ~33% (low)? Probably. Yes!

Yes with economies of scale...blah....blah...blah...

Let's assume (I'll use the 150M, but I don't want to):

A. 5% of their 150M userbase that's 7.5M * $130 = $1B USD B. 5% of their 150M userbase that's 7.5M * $89 = $668M USD C. 5% of their 150M userbase that's 7.5M * $50 = $375M USD

Let's play with some more numbers because I think 5% is super generous. Why? Yes, Snapchat's demographic is 18-24 yr olds but as you may know, new users over 35 is growing at 2X. Personally, I am under the impression that this means Snapchat is losing it's appeal with their current demographic.

A. 1% of their 150M userbase that's 1.5M * $130 = $195M USD B. 2.5% of their 150M userbase that's 3.75M * $89 = $334M USD C. 3% of their 150M userbase that's 4.5M * $50 = $225M USD

$1B seems a bit off from your calculations. We haven't even factored in COGS, manufacturing costs, etc. Not to mention their margins will be extremely low until they square away manufacturing which could take several years. > Diversify their future product line...

I highly doubt it is going to happen.

> Forget a remonetization strategy for ads...

I agree! I didn't say it was the best idea, but snapchat will need to go all in or not. They can't put a toe in and decide the market isn't ready or they need to raise more capital - it will send the wrong message to investors.

Again, I am operating under the assumption that Snapchat is trying to become a brand.

Re: Snapchat Releases First Hardware Product, Spectacles

#58

Post by Retra »

fowlerpower wrote: post #7

I think this is significantly better than what Google did with Google Glass. It's better because it focuses on the one thing that is really easy to do well. It does not try to do everything at once. It doesn't try to give you apps in your glasses and everything under the sun. This is the right approach to products. Do one thing but do that well. Before you criticize me think back to the original iPhone, it didn't sta…

>It's better because it focuses on the one thing that is really easy to do well.

Which thing is that? Being a camera, or being a pair of sunglasses?

Re: Snapchat Releases First Hardware Product, Spectacles

#59

Post by randartie »

sheer_horror wrote: post #45
ftrflyr wrote: post #39

Why? You need to seriously question the motives behind such a launch. IMHO: [1]Snapshot is an online multimedia application. [2]The infrastructure required to move from online to hardware requires significant investment (beyond the $1.8B they recently raised) - that of which I don't believe Snapchat can fund without a serious re-monetiziation strategy beyond Ads. It is only a matter of time before FB makes the move i…

If Snapchat is able to sell this product to only 5% of their 150M userbase that's 7.5M * $130 = 1B in revenue. Then they diversify their future product line somehow and keep selling to the other 95% of their users. Forget a re-monetization strategy for ads - ads make a product worse and it is refreshing that there may be another way for VC-backed companies to monetize.

If they can make them at a cost of $0, sure

Re: Snapchat Releases First Hardware Product, Spectacles

#60

Post by CodeWriter23 »

Hype and grumbles aside, I believe optimizing the "I want to record what I'm seeing right now" to a tap near your temple is pretty compelling. Fumbling to get my camera out of my pocket, or even just grab from tabletop and swipe-to-cam is often long enough to miss that precious moment with my daughter.
Post reply on HN