Sonos will be increasing the price of some products later this year in response to the tariffs imposed by the Trump administration. The audio giant announced the change at the company"s most recent earnings call, where it reported revenue of nearly $344.8 million for the quarter ending June 28, which beat analyst expectations.
Tom Conrad just resumed office as the new CEO after some time as the interim leader. Right now, the company is in the process of trying to pull its image out of the gutter following the disastrous app update that left many speaker systems unreliable, with core functions like playlist management and alarms stripped out. The software debacle was so bad that it ended up causing the previous CEO, Patrick Spence, to leave and Conrad, a former Pandora and Apple executive, to step into the top job.
For years, Sonos, like almost every other hardware company, worked to shift its supply chain. The company began moving manufacturing and operations from China to places like Vietnam and Malaysia way back in 2019 to sidestep earlier trade war policies, specifically the U.S.-imposed tariffs on Chinese goods that threatened to raise costs on their U.S.-bound products.
That plan has backfired. The 2025 "reciprocal tariffs" imposed by the Trump admin, however, directly target those countries where it now manufactures its devices. We are talking about new taxes of 20% on Vietnam and 19% on Malaysia. Those costs have to go somewhere.
To get the company focused, Conrad"s first major act was canceling "Pinewood", a secretive set-top box project that would have pushed the company into the video streaming market. The project was reportedly far along in its development. Instead, all that energy is going into fixing the software. The company claims it has pushed seven major updates in the last 90 days alone to restore functionality and user trust.
If you"re thinking about getting a new Sonos soundbar or speaker, this might be the right time to go for it before prices go up and hit your wallet.
Via: Bloomberg
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