Sonos to raise prices to offset tariff costs

Sonos is increasing product prices to offset recent tariff costs.

Sonos raises prices to counter tariff impact

Sonos has announced plans to raise prices across its product line later this year to alleviate the financial burden of tariffs. This decision came alongside their financial report for the third quarter of 2025. While specific products and price increases have not been disclosed, the company mentioned it would review its promotional strategies and has the ability to shift manufacturing between Vietnam and Malaysia as needed. Previously, tariffs imposed during the Trump administration ranged from 19 to 20 percent on imports from these countries. Despite these challenges, Sonos is working to diversify its supply chain and expand into markets that currently represent a small fraction of its revenue. For the third quarter, the tariffs have already cost the company $2.1 million in gross margin and $3.5 million in cash flow, with expectations of a $5 million gross margin reduction in the upcoming holiday quarter. In a glance at their revenue, Sonos posted $344.8 million for the third quarter, a considerable increase from last year's comparable quarter, following a challenging 2024 with management changes and product delays.

The decision by Sonos to raise prices reflects a broader struggle within the tech industry to manage rising operational costs spurred by tariffs. This move not only highlights the impact of international trade policies on businesses but also raises concerns about consumer reactions to higher prices, especially during a time of economic uncertainty. As companies navigate these pressures, balancing price adjustments while maintaining customer loyalty becomes crucial. Sonos's efforts to diversify its supply chain could be a proactive measure, but the success of these strategies will hinge on consumer acceptance of the impending price hikes.

Highlights

Sonos’s pricing strategy will be closely watched as economic conditions evolve.