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No New Sonos Headphones But New Speakers Tipped

They were supposed to be the next big thing from US sound Company Sonos, wireless headphones that would prop up slowing sales of their networked speakers that are facing new competition in a cluttered market.

Now the rumour is that the Company whose share value has fallen 31% during the past six months is struggling to deliver their new wireless headphone offering.

CEO Patrick Spence told investors late last week that the US Company will be “focused on launching new products in their existing product categories” for the remainder of this financial year.

Recently Sonos acquired UK Bluetooth LE Audio and UK headphones maker RHA Audi, leading many to speculate that its long-awaited first pair of wireless headphones would soon be forthcoming.

There was no mention of any headphones this year.

Tipped to be launched in the first quarter of 2022 Spence is now claiming the business has a has a “commitment to launching at least two new products per year”.

Sonos’ last product release was the Sonos Beam Gen 2 in October 2021, it’s the only one to be launched during this current financial year.

During the last quarter Sonos delivered $664.5 million in revenue.

The business claims that they will deliver $2.5 billion in revenue in fiscal 2023/2024 and that they are “well-positioned to drive growth for the long term even in challenging times”.

Sonos management claimed that consumers can expect a new model in one of Sonos’ pre-existing product areas in the coming months.

Sonos has less than 2% of the US$89 billion global audio market with their customers who are locked into their eco system and product range having to buy extra Sonos products at a premium price when they want to upgrade or expand their sound offering.

Sonos accounts for less than 10% of the total spend in the $18 billion premium home audio market, primarily inclusive of the premium price categories such as the $100 and higher wireless speaker category and $200 and higher soundbar market.

Currently the audio market is growing and Sonos is looking to capitalise on the evolution of remote work and increase demand for networked speakers.

APAC of which Australia is a key market grew sales 18%, primarily driven by available supply to support the strong demand.

However, Sonos’ speaker revenue was down 5% year over year as this category was most impacted by component shortages.

The Companies system products revenue increased 38%, driven by the continued strength of their installer channel.

Partner products and other revenue increased 37%, primarily driven by third parties such as Sonance and IKEA.

Due to a move to stop promotions gross margin of Sonos increased 140 basis points to 47.8% despite increased shipping costs. This opens the door for the business to pass on more margin to retailers.

 

 



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