Android users may want to think twice, before they consider purchasing a Sonos wireless speaker, with the US Company whose stock has fallen 28% during the past five days set to remove the On This Mobile Device Option’ resulting in Android smartphone or tablet users losing the ability to play music files that are stored locally on their devices.

This music sources tab will be removed on May 23, 2023.

The same feature has also been removed from iOS and iPadOS versions.

Instead, Android users will have to use Bluetooth, but that only works on Sonos Roam, Sonos Move, and the new Era 100 and 300 speakers.

The alternative is that Android device users can put their phone’s music library on a network-attached storage (NAS) device.

Last week Sonos announced their latest financials, and they were according to one analyst “Shocking”.

Here are those financial highlights announced by Sonos who despite launching two new speakers that are not selling through with retailers are now facing a grim quarter ahead.

  • Revenues declined 23.9% year-over-year (YoY) to $304.2 million.

    Gross margin decreased to 43.3%, it was 44.8% in the quarter last year.

    Sonos had a net loss of -$30.7 million versus a net profit of $8.6 million in the second quarter of 2022.

    Non-GAAP net income of $5.7 million versus $36.8 million last year.

    This is a -84.5% drop from their own “adjusted” numbers.

    Adjusted EBITDA of -$10.6 million compared to a positive $46.9 million last year.

One of the real problems for Sonos is that costs associated with running the business are climbing while revenues are falling. Research & development costs increased +24.4%, Sales & Marketing costs increased +6%. These cost increases combined to drive total operating expenses up from $168.9 million to $188.8 million or 11.8%.

Sonos CEO Patrick Spence also had no good news for the rest of the year claiming “Though our second quarter results were in-line with our guidance, we are reducing our expectations for the second half of Fiscal 2023 due to softening consumer demand and channel partner inventory tightening. As a result, we are taking swift action to reduce our operating expenses and protect our profitability.”.