Snap's new AR glasses need lower prices to reach consumers, analysts say

Investing.com -- Snap launched its long-awaited Specs augmented reality glasses at the Augmented World Expo, but analysts at Truist and Stifel cautioned that the $2,195 price tag will limit near-term adoption and do little to close the gap with category leader Meta Platforms.

Truist analyst Youssef Squali maintained a Hold rating on Snap, noting that while the launch is "strategically important," it "does not change the competitive hierarchy."

Squali pointed to the price gap versus Meta's sub-$500 glasses as a significant barrier, adding that CEO Evan Spiegel himself suggested 100,000 units could be "a 'stretch goal' for this version, implying that it's likely to take time (and likely lower price points) to drive mass adoption."

Meta sold approximately 7 million units last year and is on track to exceed 10 million this year, by Truist's estimate.

Stifel analyst Mark Kelley echoed the concern, saying the premium price point "likely keeps adoption limited in the near-term" relative to Meta's AI glasses lineup priced between $379 and $799.

Kelley acknowledged the glasses appear technically capable and that Snap's developer ecosystem, with more than 450,000 developers having built over 5 million lenses, gives Specs "a more complete product foundation than prior iterations."

Specs are fully standalone, powered by dual Snapdragon processors, offer a 51-degree field of view and up to four hours of mixed-use battery life, with a charging case providing approximately 20 total hours.

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