Sonos is in a little bit of a tough patch with its client {hardware} enterprise. Demand isn’t practically on the identical degree that it was a couple of years in the past, and CEO Patrick Spence has used the phrase “difficult” greater than as soon as when discussing the corporate’s final a number of monetary quarters. Right this moment’s earnings, which noticed income lower by 5.5 p.c yr over yr, are one other instance.
“Whereas it was a difficult yr within the classes during which we play, the power of the Sonos model and product portfolio enabled us to retain a powerful market share place,” Spence mentioned in Sonos’ press launch.
However Spence and the Sonos crew predict large issues forward in 2024. Specifically, some form of important new product is on the roadmap for later subsequent yr that Sonos appears fairly enthusiastic about.
“That is the start of a multi-year product cycle the place we anticipate to reap the rewards of our R&D investments,” Spence mentioned. “This cycle begins with our entry into a brand new multi-billion greenback class within the second half of the yr that may complement our present providing, delight prospects and drive quick income.”
Throughout Sonos’ earnings name, Spence shared a couple of extra tidbits. “All advised, we anticipate to generate over $100 million from new product introductions this yr [fiscal 2024]with this thrilling new product accounting for a big portion of this income within the second half,” he mentioned.
May he be speaking in regards to the long-rumored Sonos headphones? Following the decision, an inner e-mail from Chief Product Officer Maxime Bouvat-Merlin was leaked to Bloombergdisclosing a devoted headphone crew inside Sonos. The e-mail additionally advised staff to anticipate job cuts on Thursday on account of “a shift in product technique,” however didn’t say what number of.
The headphone and earbud market is huge, and if Sonos is searching for a income driver, that’s actually one technique to get there. The point out of R&D by Spence might additionally imply we’re lastly going to see the fruits of Sonos’ acquisition of Mayht, a startup that got here up with an revolutionary new strategy to speaker transducers to provide huge sound from small elements.
Nearly one yr in the past immediately, Spence introduced that Sonos can be coming into 4 new product classes over the approaching years. The primary one, Sonos Professional, ended up being commercially centered. It’s a subscription providing for companies which can be searching for straightforward management over the music performed all through their area. That form of factor is vital for Sonos’ long-term technique, however it’s additionally a little bit of a nap for normal shoppers such as you and me. Hopefully we are able to rely on one thing just a little extra intriguing subsequent yr. Based mostly on Spence’s tease, I actually am.
The timing is beginning to really feel proper for headphones. Between LE Audio and upcoming earbuds that may use Wi-Fi to make up for Bluetooth’s weaknesses, Sonos may lastly see a gap to do one thing distinctive in comparison with different tech gamers — maybe with clever handoff with the corporate’s audio system, soundbars, and moveable units. As for brand spanking new in-home audio merchandise, I wouldn’t anticipate a brand new Sonos Arc anytime quickly, however the Sonos 5 is a primary candidate for a revision within the subsequent couple years now that the corporate is so invested in spatial audio.
Replace November sixteenth, 4:37AM ET: Added particulars from leaked inner Sonos e-mail.
