Sonos Faces Tariff Challenges and Price Increases in 2025

In 2025, Sonos is facing a challenging year as it strives to regain its foothold in the competitive audio market while contending with increased tariffs that have impacted their pricing strategy.

This year, U.S. President's recent tariffs announcement, which includes a 19% tariff on goods imported from Malaysia and a 20% tariff on imports from Vietnam, is crucial for Sonos as the company partially manufactures its audio products in these countries. In response, Sonos is considering raising prices on certain products as it collaborates with manufacturers and partners to manage these costs effectively.

CEO Tom Conrad mentioned during the Q3 2025 earnings call that it's essential to adapt their pricing strategy to optimize gross profit while keeping a close watch on consumer behavior and competitor actions. The company aims to create a pricing structure that supports its profitability goals despite these external challenges.

Further affecting Sonos' business is their struggle with previous software issues, which damaged the company’s reputation when an ill-received app update caused functionality problems for many Sonos devices. Despite these challenges, the company remains committed to providing value through software enhancements and future product releases planned beyond fiscal 2026.

The escalating tariffs have implications for electronic pricing in general, and Sonos must be extra cautious as they look to launch new products with a focus on long-term reliability, attractive pricing, and enhanced software experience—an endeavor that could be impacted by the expected price increases in the electronics sector at large.

Sonos continues its recovery journey after a setback in 2024, and CEO Conrad emphasized the company's determination to regain momentum and accelerate their path forward.