Snapchat Changes Its Name, Enters The Hardware Space

Snapchat, the fast growing and wildly popular social media app, announced last week it has officially changed the name of the company to Snap Inc.

Snap said in a blog post that it is no longer appropriate to maintain the "chat" part of its name since the company has also moved beyond simple chatting and has entered the hardware business.

Snap introduced Spectacles, a set of sunglasses with an integrated video camera that makes it easier and more fun to create and share Memories. The device will sell for $129.99 and connects directly to Snap's social media app through Bluetooth or Wi-Fi and transfers the videos directly.

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"Imagine one of your favorite memories," the company explained. "What if you could go back and see that memory the way you experienced it? That's why we built Spectacles."

More Than Just A Toy

Snap isn't the first social media company to enter the hardware space as Facebook Inc FB begin delivering its Oculus Rift devices earlier this year.

Snap declined to discuss with CNBC its long-term plans for its new hardware device, but that isn't stopping experts from speculating.

"I think Snapchat is pushing the edges of what the camera is," Josh Elman, a partner at Greylock Partners told CNBC's "Squawk Alley" on Monday. "I think their brand is so strong with people in their early 20s that they might sell a lot more of these than anybody is predicting. ... They're positioning it as this fun toy for people to engage with, not something that you need to think about as your next big technology investment."'

Elman added that Spectacles also marks the "beginning of a much broader set of things we're going to see from Snap," including changing how "people think of the camera."

He expanded that the concept of a camera will change to become "right there with you all the time."

However, until Snap's CEO Evan Spiegel or other key insiders explain what the possible end-game could be, CNBC suggested Spectacles just remain a "fashion statement and a way to post to the Snapchat app."

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