Sonos to raise prices in 2025 as tariffs bite and it tries to win back customers
In a year meant to repair relationships with listeners and investors, Sonos says it will increase prices on select products later in 2025—an unwelcome twist as the company attempts a comeback.
The move follows newly imposed US import tariffs that hit multiple Asian manufacturing hubs. Goods coming from Malaysia now face a 19 percent tariff, while shipments from Vietnam carry a 20 percent rate. Although some components—like semiconductors—are reportedly excluded, the broader levies still raise costs for finished goods and accessories.
Sonos’ manufacturing footprint adds complexity. The company builds its core audio hardware domestically but relies on partners in Malaysia and Vietnam for certain accessories and passive in-wall/in-ceiling speakers. With higher import costs landing, leadership told investors it is working with contract manufacturers and retail partners to share the burden but will ultimately lift prices on a subset of the lineup before year’s end. Exactly which products—and by how much—remain under review.
Management added that it will watch how shoppers react, keep an eye on competitors, and recalibrate in collaboration with sales channels as needed. The priority, they said, is a pricing strategy that supports maximizing gross profit dollars without derailing demand.
Tariffs are already showing up on the balance sheet. The finance team guided that tariff expenses will be roughly $5 million in the fourth fiscal quarter, after recording about $3.5 million the prior quarter.
A comeback still shadowed by app fallout
Sonos has spent the past year digging out from a bruising software episode. A major app overhaul last year removed basic features such as editing playlists and queues, and some older speakers experienced functionality issues. The company continues to argue that software updates should compound the value of its hardware over time, but it must first rebuild trust after that misstep.
New hardware hasn’t provided much distraction. The last notable launches were the Arc Ultra soundbar and Sub 4 subwoofer in October 2024. Reports earlier this year indicated plans for a streaming video device were shelved. Leadership now points to a product roadmap extending beyond fiscal 2026, but any new gear will need to make a compelling case on software experience, long-term reliability, and—now more than ever—price.
Tariff pressure across the electronics aisle
Sonos isn’t alone. Electronics pricing is under pressure as recent policy changes ripple through the supply chain. The long-standing de minimis rule that allowed duty-free imports for packages under $800 has been curtailed, increasing costs on many small-ticket items like PC peripherals and DIY parts. Meanwhile, the US and China have paused some tariff actions while negotiating, but if talks falter, duties on China-origin goods could surge dramatically—potentially into triple digits—further inflating consumer tech prices.
For Sonos, higher price tags come at a tricky moment. The brand is already working to regain momentum after 2024’s stumbles. Management insists the trajectory is improving and plans to accelerate execution from here, but sticker shock could slow that recovery if buyers push purchases down the road or look to rivals.
Bottom line: Tariffs are forcing Sonos’ hand on select price increases, even as the company tries to re-earn goodwill with better software, steadier launches, and clearer value for money. The next few quarters will show whether the strategy balances profit protection with demand.
