SnapChat Shutting Down?
Snapchat made a serious error in attempting to release a drone, it was a decision that could have devastating consequences.
Snapchat is well-known as a social media site. Friends can snap fun, candid photos that capture whatever moment they want to share. The message disappears once viewed by the recipient. It is the epitome of our instant gratification culture. However, the parent company (Snap) wants to be known as more than a social media giant. In their latest attempt to find a footing into hardware, they announced news of a new drone, Pixie. The drone didn’t take off as the company hoped, and while Snapchat isn’t going anywhere, it looks like Pixie will be discontinued before it ever has the chance to fly.
Snap first announced the development of Pixie back in April. It was released publicly just a few short months later. The drone connects directly to Snapchat and allows users a unique way to take photos. Priced at $230, it is not necessarily out of the price range for drone enthusiasts.
The drone fits into the palm of your hand and can even launch from that position. Pixie can fly in four different directions, which gives the user ample opportunity to take interesting selfies and share them on Snapchat. It is a significant and innovative upgrade from selfie sticks.
But after only 4 months on the proverbial shelves, Snap has decided to stop all production of Pixie. The company has yet to make an official announcement, so the reason behind the decision is unclear. Especially since Snapchat remains popular among youth, who seem to have an ever-growing desire to share every moment with friends and family. For now, you can still purchase the drone on Snap’s website.
The Wall Street Journal first broke the news. However, their source remains unnamed as they did not have the authorization to speak on the matter. If the Wall Street Journal report proves accurate, it is another major blow to Snap. According to the most recent financial report, the company is already showing disappointing earnings after the launch of the Pixie selfie drone. This problem comes on the heels of a sharp decline in Snapchat ad sales and puts the financial outlook of Snap on a precarious ledge.
Snap’s shares have lost nearly three-quarters of their value this year, which is a tremendous blow. Flagging ad sales on Snapchat caused much of the loss. They have been unable to increase demand for ad sales, and their attempt to make up for the loss with the launch of Pixie has failed.
Snap’s failed hardware attempts are not new. The most infamous was Spectacles, launched in 2017. These were sunglasses featuring a built-in camera. The shades would allow you quick and easy uploads of photos to Snapchat. Much like Pixie, Snap designed Spectacles to partner with the app and make photo sharing a seamless process. However, those unique sunglasses did not sell. The company sat on enough industry to result in the news that they had to write down almost $40 million.
With Snap facing repeated financial blows, the company’s future looks may be on shaky ground. Despite the popularity of Snapchat, if it cannot bring in a fair amount of revenue, some drastic changes will be necessary. Without ad sales and facing the abrupt halt of Pixie production, there does not currently appear to be a way forward. Time will tell whether Snap can ultimately turn its sinking ship around.
