During what's supposed to be a year of redemption, Sonos has announced that its gadgets will become more expensive this year, complicating the company's comeback plans.
Tariffs that US President Donald Trump announced last week take effect today, including a 19 percent tariff on goods imported from Malaysia (the levy is said not to apply to semiconductors and was cut down from a 25 percent tariff that Trump threatened in July.) Among other countries affected is Vietnam, which now sees a 20 percent tariff (down from the 46 percent rate announced in April).
Sonos makes all its audio products in the US, “short of a few accessories and our passive speaker partnership with Sonance," which entails in-wall and in-ceiling speakers, in Malaysia and Vietnam, Sonos CEO Tom Conrad said yesterday, per a transcript of Sonos’ Q3 2025 earnings call. The new CEO explained:
With last week's news, the tariff rates we were subject to going forward appeared to be 20 percent for Vietnam and 19 percent for Malaysia. We continue to work closely with our contract manufacturers and our channel partners to share tariff costs, though it has become clear that we'll need to raise prices on certain products later this year.
Sonos hasn’t specified which products will become expensive or by how much. Conrad said Sonos is currently “evaluating each of the products.”
He noted that after Sonos raises prices, the company will “monitor consumer behavior” and the competition and then “make adjustments in collaboration with our channel partners when and if necessary.”
“I think the best way to think about what we're trying to do here strategically is to craft a pricing plan that supports our goal of optimizing gross profit dollars," Conrad told investors.
During that call, Sonos CFO Saori Casey said that the company expects “tariff expenses will be approximately $5 million in Q4.” In Sonos’ fiscal Q3, it paid $3.5 million in tariffs, Casey said.
Sonos is still recovering from app problems
Since July 2024, when Sonos' then-CEO Patrick Spence admitted that a software update inadvertently broke many Sonos devices, the company has been trying to prove to customers and investors that its pricey audio devices are still worth buying.
During the earnings call, Conrad said he believes the value of Sonos gadgets “compounds over time, thanks to the kinds of software updates that deliver new experiences.” But a widely reviled app update last year damaged Sonos' reputation in this area. The update stripped the app of some basic features, such as the ability to edit playlists and song queues, and many Sonos devices, especially older ones, stopped functioning properly.
Meanwhile, Sonos hasn’t released a new product since the Arc Ultra soundbar and Sub 4 subwoofer in October 2024. In March, reports surfaced that Sonos axed its streaming video player. Conrad told investors yesterday that Sonos has a release roadmap going beyond its 2026 fiscal year. Any devices in that roadmap, however, will be challenged to sell customers on their software, long-term reliability, and price.
Customers may cut Sonos some slack, considering the widespread impact that tariffs are expected to have on electronics pricing. In May, the Trump administration axed the de minimis exemption that enabled duty-free imports of goods worth $800 or less, impacting electronics such as PC peripherals and DIY parts. Currently, the US and China have paused tariffs as the countries look to reach an agreement by August 12. At that time, goods imported from China could face tariffs as high as 145 percent, which would significantly impact the prices of most electronics sold in the US.
But Sonos is already struggling to release and sell new products at high prices, so raising them even higher could further harm the company.
“We lost the momentum in 2024. We're starting to get it back, and we're going to accelerate our pace from here,” Conrad said.
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