Sonos APAC Revenues Fall 17%, New Products Coming Soon
Sonos CEO Patrick Spence has confirmed Sonos is set to deliver several new products, which is tipped to include a small speaker and new headphones. Spence was speaking at a conference call for the last quarter’s results which saw Asia Pacific revenues fall 17%.
“Speaking after announcing a 15% overall increase in revenue during the last quarter when the Company benefited from COVID-19 lockdowns, Spence said that the Sonos business model “Has two important drivers. The first is attracting new customers and the second is driving additional purchases from existing customers. He said that the Company plans to launch two new products a year going forward.
The Company said that APAC decreased 17%, primarily because of slower module orders out of IKEA who are struggling to sell audio products.
Analysts believe that the US Company is about to enter a brand-new product category with many tipping a late entry into the cluttered and declining headphone market.
That said, the firm is also reportedly working on a new Bluetooth speaker that comes with a charging dock.
“We remain committed to launching at least two new products per year and are well on track as we look at our fiscal 2021 product roadmap,” Spence said. “We are excited to introduce our newest product next month. Stay tuned for details.”
He added that the firm will maintain “a relentless focus on innovation in our traditional product segments and you’ll see continued innovation and experimentation in services”.
The firm recently boosted its Sonos Radio offering, adding new artist stations and music shows, so we can expect to see more such improvements to the service over the next 12 months, too.
Spence did not say how much business now comes from selling direct via the Companies own web site. Gross margins were incredibly strong in the quarter and reached a record 46.4%.