The Wall Street Journal reported on Thursday, citing people familiar with the matter. The Pixy, priced at $230 (about Rs 18,300), will continue to be on sale in the current version, according to the report.
The news comes nearly four months after the Santa Monica, California-based company launched a pocket-sized product. Pixy camera, which can fly several feet above the user to take pictures and record videos.
Snap declined to comment on report.
Rising costs and other economic problems have forced companies to limit their marketing spending, hurting online companies that rely on advertising like Snap, Facebook-parent Meta, Twitterand Pinterest.
Last month, Snap warned of “extremely challenging conditions” due to the current uncertain economic situation and increased competition after reporting disappointing results.
The company is reeling from the privacy changes being made to Apple Iphonealso said it would significantly slow down hiring, invest in its advertising business and find new revenue streams as part of its belt-tightening efforts.
On Monday, Snap speak it has reached 1 million subscribers for Snapchat paid subscription, after launching the service in June as a new revenue stream.
Social media companies include Snap, Twitterand Meta . PlatformAll of which make most of their revenue from digital ad sales, are facing a weakening ad market as record-high inflation forces brands to dominate their marketing spend.
Snap’s shares fell 25% last month after disappointing second-quarter earnings, driven by weaker-than-expected ad demand by Wall Street. CEO Evan Spiegel said the company will work to accelerate revenue growth, in part through new revenue streams.
© Thomson Reuters 2022
