Feed: Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics
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Title: Sonos is raising prices this year to make up for tariff expenses

Date: Thu, 07 Aug 2025 12:30:31 +0000
Link: https://www.engadget.com/audio/sonos-is-raisi...

Sonos plans to raise prices across its products later this year in order to
minimize the impact of tariffs on its earnings, the company has revealed
alongside its financial results [PDF] for the third quarter of 2025. It
hasn't listed the products and their new prices yet, but it said that it's
evaluating any changes it might need to its promotional strategies and that
it has flexibility to move production between Vietnam and Malaysia as needed.
To note, the Trump administration had imposed a 20 percent tariff on imports
from Vietnam and a 19 percent tariff on imports from Malaysia. Sonos also
said that it will invest on diversifying its geographic footprint and
expanding its presence in markets that represent only a small share of its
revenue today to drive growth.

The company took steps to diversify its supply chain last year, which led to
its manufacturing facilities in the two aforementioned countries. It now only
relies on Chinese plans for products bound to the US for a limited number of
accessories, such as speaker stands. Still, for the third quarter of 2025,
tariffs reduced Sonos' gross margin for the third quarter by $2.1 million and
its cash flow by $3.5 million. In the fourth quarter of the year, which
covers the holiday shopping season, Sonos expects tariffs to reduce its gross
margin by $5 million and to remove between $8 to $10 billion from its cash
flow.

Overall, Sonos posted a revenue of $344.8 million in the third quarter, which
is almost $100 million larger than its revenue for the fourth quarter of
2024. It's not a secret that 2024 was a tough year for the company. It rolled
out a major update that broke its app, which led to the delay of product
releases as it worked to fix the issue. Former Sonos CEO Patrick Spence even
stepped down in the beginning of 2025 and was replaced by ex-Snap executive
Tom Conrad.

This article originally appeared on Engadget at
https://www.engadget.com/audio/sonos-is-raisi...
for-tariff-expenses-123031336.html?src=rss

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