Sonos Faces Price Increases Amid Redemption Efforts
This year was supposed to be one of redemption for Sonos, but the company is now facing a significant hurdle: increased product prices. Due to the recent tariffs announced by US President Donald Trump, the cost of Sonos products is set to rise. These tariffs, which took effect today, include a 19 percent tariff on goods from Malaysia and 20 percent on goods from Vietnam, down from a previously threatened 46 percent rate. While semiconductors are exempt, the tariffs still impact Sonos as the company produces many of its accessories and collaborates with Sonance for passive speakers in these regions.
Tom Conrad, the newly appointed CEO of Sonos, explained during a Q3 2025 earnings call that the company will need to adjust prices on certain products due to these tariffs. Although details on which products will be affected are not yet specified, Sonos intends to evaluate and monitor the situation closely, making necessary adjustments in collaboration with their partners.
Conrad communicated that Sonos aims to "optimize gross profit dollars" through a strategic pricing plan. The company anticipates about $5 million in tariff expenses for Q4, an increase from the $3.5 million paid in Q3.
Recovering from App Challenges
Sonos's struggles began in July 2024 when an app update inadvertently disrupted several devices' functionality, damaging its reputation. Despite efforts to recover, the company hasn't launched any new products since the Arc Ultra soundbar and Sub 4 subwoofer in October 2024. Reports from March 2025 also indicated the cancellation of a streaming video player, previously a potential competitor to Apple TV.
Looking forward, Sonos has a product roadmap extending beyond 2026, but the current market challenges are steep, considering the tariff's effects on electronics pricing. The absence of the de minimis exemption further complicates the landscape for tech manufacturers, impacting imports valued under $800. The looming potential for severely increased tariffs on Chinese goods could amplify these challenges.
Despite these obstacles, Conrad remains hopeful, expressing confidence in reclaiming lost momentum and accelerating growth. "We lost the momentum in 2024. We're starting to get it back, and we're going to accelerate our pace from here," stated Conrad.
There is a recognition in the market that while Sonos faces uphill battles in pricing and product development, the broad impact of tariffs on electronics might soften customer reactions to price adjustments.
