Sonos anticipates approximately $5 million in tariff expenses for Q4, an increase from $3.5 million in Q3. The company is recovering from a software update in July 2024 that damaged many devices and harmed its reputation. Some core app functionalities were lost, particularly affecting older devices. No new products have been launched since the Arc Ultra soundbar and Sub 4 subwoofer in October 2024. Tariffs are set to rise as US and China negotiations progress, further impacting electronics pricing and sales.
Sonos CFO Saori Casey stated that tariff expenses are expected to be approximately $5 million in Q4, up from $3.5 million in Q3, affecting pricing.
Sonos is still recovering from significant software issues that arose from a July 2024 update that damaged customer perception and device functionality.
Many customers experienced basic functionality loss in the Sonos app, leading to diminished reliability perceptions for Sonos devices, particularly among older models.
The company has not released new products since October 2024 and faces challenges selling future devices while addressing customer concerns on software reliability.
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