Sonos Faces Tariff Challenges and Rising Prices Amid Comeback Effort

In a year that was supposed to mark a resurgence, Sonos has announced an increase in its product prices, posing a challenge to its recovery plans. Recent tariffs imposed by the US government have forced the company to adjust prices, further complicated by tariffs on Malaysia and Vietnam.

CEO Tom Conrad noted that while Sonos makes its audio products in the US, certain accessories and speakers are sourced from these nations. New tariff rates of 20 percent for Vietnamese goods and 19 percent for Malaysian goods have prompted Sonos to evaluate their pricing strategy closely.

Conrad emphasized the importance of monitoring consumer behavior and competition to make necessary adjustments in partnership with their channel partners. The Chief Financial Officer, Saori Casey, highlighted the expected rise in tariff-related expenses, projecting approximately $5 million in the upcoming quarter.

The company is also striving to regain its reputation, which suffered due to a problematic app update in 2024 that compromised device functionality. Although Sonos claims its devices grow in value with software updates, the absence of new product launches since 2024 and the cancelation of their streaming video player puts pressure on their innovation roadmap.

As tariffs potentially drive up electronics pricing broadly, Sonos faces the challenge of persuading consumers to invest in its offerings despite recent setbacks. CEO Conrad remains hopeful, aiming to reignite the momentum lost last year.

The company now faces the daunting task of balancing price increases while convincing users that their products are worth the investment over the long haul, amidst an evolving market landscape.