Those Snapchat Spectacles which were so trendy only a little more than a year ago have cratered into oblivion. We’ve already told you that Snapchat is sitting on a huge stockpile of unsold Specs, but now the financial hit is coming. Snapchat has spent $39.9 million in the last 3 months just on storage for the unsold glasses.
These costs include “excess inventory reserves and inventory purchase commitment cancellation charges”. This means retailers cancelled their orders to carry them after consumer interest died out. All in all, Snapchat lost $443 million in the last quarter so the $40 million from Specs is only one piece of a bleak financial picture for Snapchat. It appears that you won’t be seeing Spectacles vending machines at festivals come 2018.