TL;DR
- Throughout its earnings name, Sonos talked about that it’s getting into a multi-year product cycle the place the corporate expects to reap the rewards of its R&D investments.
- The corporate has stated it is going to enter a brand new multi-billion class in H2 2024 to enrich its present product portfolio.
- It’s extensively believed that the brand new product class can be headphones as the subsequent adjoining marketplace for Sonos.
Sonos is greatest identified for making some nice audio system just like the Sonos Transfer and the Sonos 5, however there’s no denying that the demand for distinctive audio system isn’t akin to different audio merchandise. Sonos is aware of this, as its income decreased by 5.5% regardless of sustaining a powerful market share within the classes wherein the corporate competes. It appears the corporate has lofty ambitions for the approaching yr, because it has began teasing a significant new product coming subsequent yr.
As Sonos shared in its earnings name (by way of The Verge), 2024 is the start of a multi-year product cycle the place the corporate expects to reap the rewards of its R&D investments. This cycle will start with Sonos’ entry into a brand new multi-billion greenback class in H2 2024 to enrich its present product portfolio.
Additional, it expects to generate over $100 million from new product introductions in fiscal 2024, with the brand new product anticipated to account for a big portion of income within the second half.
A report from Bloomberg citing inside memos means that the corporate has a workforce devoted to headphones. The corporate has been engaged on headphones for greater than 4 years, however a product has but to be introduced.
It is sensible for Sonos to enter the headphone market. It already operates in an adjoining market with its speaker vary and is well-positioned for an enlargement into the brand new area. Sonos hasn’t entered this area in significant methods but, and it has the chance to make a distinction with an excellent product expertise.
