Apple Fails To Materialize As Sonos Buyer, Google Reveals New Competitor
The lack of any response from Apple after analysts were suggesting that struggling US sound Company Sonos who is again laying off staff has seen their shares start to retreat.
As of this morning Sonos stock that has been as low as $6.05 was trading at $15.18 after climbing on speculation that Apple could buy the business.
Apple bought Beats for US $3.2 Billion not because of their headphones but their database of music streaming customers.
With Sonos, their speakers are average at best and Apple already know who Sonos customers are if they own an Apple iOS device.
Apple is also working on a brand new sound system and new audio technology and what could be attractive is the Sonos brand name to attach to the new system that will deliver 24 bit audio unlike the older Sonos systems that make up the bulk of the Sonos customer base.
This could mean that Apple will not pay a premium for the brand which is slashing staff.
Last month the Company moved to eliminate 12 percent of its global workforce and at this stage it’s not known how many staff will be laid off in Australia or whether the local operate will resort back to a distributor model.
The company said the layoffs are meant to “reduce operating expenses and preserve liquidity in the face of the [COVID-19] pandemic.
Analysts were spruiking last month that Sonos shares could surge 130% from current levels and Apple is likely to acquire the company, according to a note published on Monday by Citron Research’s Andrew Left.
Initially Sonos surged as much as 22% to $14.53 on after the report was published, they then rose further to $15.18.
Without the Apple factor the shares appear to be worth between $6 and $8 which Apple will be well aware off.
The problem for Sonos is that magic word profits.
The Company since inception has struggled to make a profit and at one stage their former CEO lied to ChannelNews claiming the Company was profitable.
This claim unstuck when the Company had to reveal their financials before they were floated in 2018.
Left pinned a $30 price target on Sonos for 2020 but said the stock could surge even more if it re-rated to a higher multiple: “Assuming Sonos should trade at 3x sales, this implies a stock price of $38. At 6x sales, this implies a stock price of $64.”
If Sonos sales are anything to go by the guy is talking out of his backside.
Recently Sonos moved to sue Google, the big search Company and owner of their own voice activated responded by filing a lawsuit accusing home speaker maker Sonos of infringing five of its patents, escalating tensions between the partners that have already led to a US International Trade Commission probe.
On the same day that Sonos publicly sued Google and accused Amazon of stealing its proprietary technology, Apple began selling Sonos’ speakers in its Apple Stores.”
Last night Images of an all-new Google Home speaker surfaced online, confirming rumours that the company has redesigned its flagship Google Assistant-enabled speaker under the Nest brand and that it is technically superior and cheaper than what Sonos is selling.
An FCC listing published last night revealed a Google audio device labelled GXCA6, images reveal a fabric-swathed speaker that looks classy.
The original Google Home speaker is “no longer available” from the Google Store and retailers in Australia are now longer ranging the old model.
last year the company rebranded the compact second-generation Home Mini as the Google Nest Mini, and followed up the smart display Google Home Hub with the Google Nest Hub Max.
Like the other products in Google’s Nest audio collection, ‘Prince’ comes covered by a chalk-coloured fabric. The grille seems to wrap around the device lengthwise, suggesting the elliptical-shaped speaker will stand about 18 centimetres tall.
It appears to have a physical mute toggle and power port.