Sonos' prices are expected to rise again, according to the latest confirmation from the company's CEO
Sonos, the popular audio equipment manufacturer, has announced that some of its speakers and soundbars will be affected by price increases later this year. The increases are a direct response to tariffs imposed during Donald Trump's administration, particularly on products made in Vietnam and Malaysia.
The tariff rates for these countries are around 19% for Malaysia and 20% for Vietnam. While no comprehensive product list has been officially released, high-profile items such as the Sonos Era 300 soundbar and Arc Ultra soundbar are widely expected to be affected.
These price increases are necessary to offset the tariff-related cost increases and protect margins. In the third fiscal quarter of 2021, Sonos reported that these tariffs raised its expenses by an estimated $2.1 million, with a projected $5 million for the fourth quarter.
Sonos has shifted most manufacturing out of China, which was largely spared from the highest tariffs. However, the tariffs on Vietnam and Malaysia factories still weigh on costs.
Tom Conrad, the current CEO of Sonos, addressed the impact of these tariffs on the brand's devices. He stated that Sonos is working closely with its contract manufacturers and channel partners to share tariff costs.
Conrad took over from Patrick Spence, who stepped down after eight years in charge. Under Conrad's leadership, Sonos posted $344.8 million in revenue and a net loss of $3.4 million in its first quarterly earnings report.
Despite these challenges, Sonos has faced both criticism and praise in the last 18 months. Last year, the company announced two new products, the Sonos Ace headphones and the Sonos Arc Ultra soundbar, both of which were highly praised. The Sonos Ace headphones deliver superb sound performance and have a comfortable design.
For consumers in the U.S., it's advised to consider purchasing Sonos speakers or soundbars sooner rather than later to avoid the tariff-driven price adjustments. It's not yet clear which specific products will see a price hike, but if you're considering a Sonos product, it's best to buy it now before the price increases kick in.
[1] Tariffs on Vietnam and Malaysia to Affect Sonos Products
[2] Sonos Shifts Manufacturing Out of China to Avoid Tariffs
[3] Sonos Q3 Earnings Report Shows Impact of Tariffs
[4] Sonos Era 300 and Arc Ultra Soundbars Likely Targets for Price Hikes
[1] The tariffs imposed on products from Vietnam and Malaysia, as part of Donald Trump's administration's proceedings, may lead to potential price increases for smart-home gadgets and technological devices, such as Sonos speakers and soundbars, due to the increased production costs.
[2] In an attempt to bypass the highest tariffs, Sonos has moved most of its manufacturing out of China. However, the tariffs on its Vietnamese and Malaysian factories still represent a significant portion of its overall manufacturing expenses and might impact its business operations in the future.
