Apple Launch Great News For Sonos Stock As Shares Rise By 5.7%
Sonos stock took an unfortunate tumble after Apple quietly pulled its products and other audio goods from the likes of Bose and Beats last week.
But after Apple’s launch event today, it seems like fears the new HomePod would gobble up California-based Sonos business in the audio market were unfounded.
Sonos recovered nicely during the October 13 virtual launch and bounced back by 5.7% by the end of the day to $14.99, after trading at around $14.50 before Apple’s announcements.
It was Apple which suffered a stock plummet today instead, with shares dipping by almost 2.5% as the tech giant introduced the iPhone 12 models, HomePod and MagSafe chargers.
Apple’s smart speaker could still pose a threat to Sonos’ market share and it remains to be seen how its shares will fare after the official release date.
The move to dump Sonos been coming for a while, now Apple is serious about getting a larger share of the audio market with a new range of sound gear which includes the new network speakers and a yet-to-be released pair of over-ear headphones.
Sonos already knows which Apple consumers have downloaded the Sonos app with insiders telling ChannelNews that Apple iPhone owners make up more than 60% of sales.
While Apple’s damage to Sonos’ stocks is not as severe as industry analysts suspected, the audio company’s stock still remains down 4.2% from Oct. 5, the day before Apple concerns hit breaking point.