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Snap bets on AR hardware to diversify revenue, compete with the smartphone

The news: Snap announced its sixth-generation AR smart glasses at the 2025 Augmented World Expo (AWE). The wearables will be available to the public for the first time since 2016, potentially unlocking a new revenue stream beyond ads.

The lightweight consumer smart glasses, called Specs, will launch in 2026 and include an “ultra-powerful wearable computer.”

Value over cost: Snap CEO Evan Spiegel said at AWE that the company is focused on increasing the value of its device, not lowering the price point for consumers. Its current Spectacles smart glasses are available to developers for $1,200 per year—far more than Ray-Ban Meta Smart Glasses or even an iPhone 16.

  • “It’s always about improving the value of the device. For us, the bar is something that’s 10 times better than the next best experience, the next best alternative ... which is the smartphone,” Spiegel said.
  • He added that Snap is developing features that smartphones can’t offer and will work to reduce consumer costs later.

Snap said it has spent more than $3 billion on AR research and development over the past 11 years.

Developer benefits: While a high price could dissuade adoption, Specs could avoid one pitfall faced by Apple’s Vision Pro—a lack of content.

  • Snap’s wearables and Snapchat app benefit from Lens Studio, its free design platform for developers.
  • Rather than needing to spend on exclusive content or purchase IP from companies, Snap’s Lens Studio creators have built more than 4 million Lenses.

Other Snap developments: Meanwhile, it’s trying to woo advertisers from TikTok by offering ad credit packages to marketers ahead of the third potential TikTok ban deadline, per Adweek. Offers include an extra $10,000 in ad spend for brands that spend $50,000 on a campaign.

Adweek said Snap’s “aggressive” move is an attempt to capture a bigger share of the mobile video ad market.

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