Key Points
Snap Inc. announced this Wednesday that its business unit responsible for augmented reality glasses research and development has officially been spun off into a wholly-owned subsidiary, Specs Ltd. The company stated that with the upcoming launch of the Specs series of augmented reality glasses this year, establishing this subsidiary will help the team achieve "more focused operational management and more efficient strategic alignment." At present, companies like Meta Platforms and Alphabet are also deploying smart glasses equipped with artificial intelligence capabilities. Snap's establishment of this subsidiary aligns with this industry trend.
On September 17, 2024, in Los Angeles, USA, Evan Spiegel, CEO of Snap Inc. (the operator of Snapchat), unveiled a new generation of Spectacles smart glasses. The device features transparent lenses capable of displaying digital virtual content within the user's field of view. Snap Inc. announced this Wednesday that its business unit responsible for augmented reality glasses R&D has officially become independent, forming a wholly-owned subsidiary named Specs Ltd. In a blog post, the company stated that with Snap set to launch the Specs series of AR glasses this year, forming the subsidiary will enable the related business to achieve "more focused operational management and more efficient strategic synergy." Furthermore, this move will help the company explore new partnerships and provide "capital operation flexibility," which includes the possibility of introducing "minority equity investments." Snap did not disclose the employee count of the new subsidiary but mentioned that Specs is currently recruiting for nearly 100 open positions. Last November, Snap had hinted to analysts its plan to establish such a dedicated subsidiary. In June of the same year, the company announced plans to launch a sixth generation of smart glasses in 2026, though specific release dates and pricing have not yet been revealed. Snap previously indicated that the new generation of glasses would be smaller, lighter, and primarily targeted at the consumer market. Snap's establishment of this specialized subsidiary coincides with a time when tech giants like Meta Platforms and Alphabet are actively deploying smart glasses integrated with AI functionality. Last September, Meta Platforms partnered with eyewear industry giant EssilorLuxottica to launch their latest smart glasses, which feature a micro-display and are priced at $799. Meanwhile, Google announced plans to collaborate with Warby Parker to launch a smart glasses product this year. Last week, Meta Platforms implemented layoffs within the team responsible for virtual reality technology R&D in its Reality Labs division, affecting over 1,000 employees, as the company shifts its strategic focus towards artificial intelligence and wearable devices. This round of layoffs reportedly sparked concerns among developers about a potential "virtual reality winter."
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