Sonos Faces Price Hike Amid Comeback Efforts
Sonos has announced its decision to increase the prices of its products this year, posing a challenge to its efforts to regain customer trust. The price hike is primarily driven by recent tariff changes. A new 19% tariff on imports from Malaysia and a 20% tariff on products from Vietnam have been imposed, adding pressure to the company's pricing strategy.
CEO Tom Conrad highlighted during Sonos' Q3 2025 earnings call that the company manufactures most of its audio products in the US, with some exceptions for accessories and partnerships in Malaysia. These changes have necessitated a price reevaluation to maintain profitability.
"With these recent tariff changes, our costs have increased, making it necessary to raise prices on certain products," said Conrad.
While the specific products affected by this price increase have not been disclosed, Conrad mentioned ongoing evaluations to determine the final decisions. The company plans to closely monitor consumer reactions and the competitive landscape to adapt its pricing strategy accordingly.
Sonos is also rebounding from a major setback in July 2024, when a problematic app update hindered device functionality, damaging the brand's reputation. The update removed essential features such as playlist editing, affecting overall device performance, especially for older models.
Despite these challenges, Sonos CEO Tom Conrad remains optimistic, believing the long-term value of their products will reaffirm consumer trust. He emphasized the need for a pricing plan that enhances gross profit without alienating loyal customers.
Furthermore, Sonos is dealing with a halted product release cycle, with the most recent launch being the Arc Ultra soundbar and Sub 4 subwoofer in October 2024. While the company has a roadmap extending beyond its 2026 fiscal year, it faces increased hurdles in launching future products amidst rising costs.
Adapting to the broader economic environment, Sonos' strategy to weather these tariffs and regain its foothold in the market remains a significant question as they seek ways to prove the durability and value of their devices to potential buyers.
