Sonos Stock Down -20.92% As Apple Deal Fails To Emerge
Sonos stock is continuing to fall with the Company that is struggling to make a profit down -20.92% for the last 12 months of trading with Apple dismissing any prospect of buying the Company.
Investors who dived into the stock when speculation was that Apple was set to make a play for the US sound Company when the stock was trading at US$17.83 have seen their investment fall to $14.70 aq share.
Back in March the stock fell to $6.97 withv the business now facing supply issues.
One of the key problems the business is facing is their audio technology is seen as ‘old hat”, proprietary and limited to 16bit Vs 24 bit found in similar and often superior products to what Sonos is selling.
Recently Google countersued Sonos for patent infringement, following Sonos originally filing a patent lawsuit against Google in January. The lawsuit alleges that Sonos is infringing five Google patents covering mesh networking, echo cancellation, DRM, content notifications, and personalised search.
Currently Sonos is looking to get into the wireless headphone market up against Apple’s Beats, Sennheiser and JBL, according to analysts it w2ill bbe a tough gig with the Company facing the real prospect that they could end up losing money on the exercise.
Rumors about a pair of Sonos headphones have been circling for a while now, first emerging in early 2019.
According to a report from Bloomberg, the headphones will likely have multiple virtual assistants that would function similarly to the company’s Sonos Arc and Sonos One speakers, and would focus on competing with Sony, Apple, Bose and Sennheiser by offering high-end audio performance.
The issue for Sonos is that not all of their current retailers will stock the product as many retailers are not happy Sonos is working hard to strip business away from retailers so that they don’t have to pay retailers margin on products that they can sell direct.