Sonos is in a little bit of a tough patch with its shopper {hardware} enterprise. Demand isn’t practically on the identical stage that it was a number 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. Today’s earnings, which noticed income lower by 5.5 % yr over yr, are one other instance.
“Whereas it was a difficult yr within the classes by which we play, the power of the Sonos model and product portfolio enabled us to retain a robust market share place,” Spence stated in Sonos’ press launch.
However Spence and the Sonos crew predict large issues forward in 2024. Specifically, some kind 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 stated. “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 speedy income.”
Throughout Sonos’ earnings name, Spence shared a number of extra tidbits. “All informed, 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 stated.
Might he be speaking concerning the long-rumored Sonos headphones? The headphone and earbud market is huge, and if Sonos is on the lookout for a income driver, that’s definitely one method to get there. The point out of R&D might additionally imply we’re lastly going to see the fruits of Sonos’ acquisition of Mayht, a startup that got here up with an modern new strategy to speaker transducers to provide huge sound from small parts.
Nearly one yr in the past in the present day, Spence introduced that Sonos would be entering four new product classes over the approaching years. The primary one, Sonos Pro, ended up being commercially targeted. It’s a subscription providing for companies which might be searching for simple management over the music performed all through their area. That form of factor is vital for Sonos’ long-term technique, but it surely’s additionally a little bit of a sleep for normal shoppers such as you and me. Hopefully we will rely on one thing a little bit extra intriguing subsequent yr. Primarily based on Spence’s tease, I definitely am.
The timing is beginning to really feel proper for headphones. Between LE Audio and upcoming earbuds that will use Wi-Fi to make up for Bluetooth’s weaknesses, Sonos would possibly 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.