Snap's AR Glasses: A Desperate Attempt to Revitalize a Struggling Business?

Snap's latest Spectacles, the fifth generation of their augmented reality glasses, have finally arrived. But, amidst the excitement, it's hard not to wonder if this is just a desperate attempt to revitalize a business that's struggling to keep up with the competition. The new Spectacles are only available to developers, who must commit to a hefty $99 monthly fee for a year to build AR apps for the device. The glasses boast improved digital visuals and a redesigned software operating system, dubbed Snap OS. But, can this be enough to turn things around for Snap? The company is partnering with OpenAI to bring AI features to the smart glasses, but this partnership raises more questions than answers. What if this partnership is just a Band-Aid solution for Snap's struggling core business? What if the company is simply trying to distract investors from its financial woes by announcing flashy new tech? Snap's core online advertising business has been struggling, with shares falling more than 20% after the company reported weaker-than-expected guidance for the third quarter. Meanwhile, rival Meta has been pouring billions of dollars into its hardware efforts, with little to show for it. But, unlike Snap, Meta has the luxury of a thriving advertising business to fall back on. It's hard not to wonder if Snap's AR glasses are just a Hail Mary pass, a last-ditch effort to regain relevance in a market dominated by Meta. As analyst Leo Gebbie so aptly put it, "Snap is just functioning at a different scale than Meta. " But, can Snap's AR glasses truly be the game-changer the company needs?