[ad_1]
During that call, Sonos CFO Saori Casey said that the company expects “tariff expenses will be approximately $5 million in Q4.” In Sonos’ fiscal Q3, it paid $3.5 million in tariffs, Casey said.
Sonos is still recovering from app problems
Since July 2024, when Sonos’ then-CEO Patrick Spence admitted that a software update inadvertently broke many Sonos devices, the company has been trying to prove to customers and investors that its pricey audio devices are still worth buying.
During the earnings call, Conrad said he believes the value of Sonos gadgets “compounds over time, thanks to the kinds of software updates that deliver new experiences.” But a widely reviled app update last year damaged Sonos’ reputation in this area. The update stripped the app of some basic features, such as the ability to edit playlists and song queues, and many Sonos devices, especially older ones, stopped functioning properly.
Meanwhile, Sonos hasn’t released a new product since the Arc Ultra soundbar and Sub 4 subwoofer in October 2024. In March, reports surfaced that Sonos axed its streaming video player. Conrad told investors yesterday that Sonos has a release roadmap going beyond its 2026 fiscal year. Any devices in that roadmap, however, will be challenged to sell customers on their software, long-term reliability, and price.
Customers may cut Sonos some slack, considering the widespread impact that tariffs are expected to have on electronics pricing. In May, the Trump administration axed the de minimis exemption that enabled duty-free imports of goods worth $800 or less, impacting electronics such as PC peripherals and DIY parts. Currently, the US and China have paused tariffs as the countries look to reach an agreement by August 12. At that time, goods imported from China could face tariffs as high as 145 percent, which would significantly impact the prices of most electronics sold in the US.
But Sonos is already struggling to release and sell new products at high prices, so raising them even higher could further harm the company.
“We lost the momentum in 2024. We’re starting to get it back, and we’re going to accelerate our pace from here,” Conrad said.
[ad_2]
Source link