Sonos Announces Price Hike to Offset Tariff Costs Amid Supply Chain Shifts
Sonos has revealed plans to increase prices across its product lineup later this year, citing the financial strain of tariffs on its earnings. The decision follows the company’s third-quarter 2025 financial results, where it reported a significant impact from trade policies affecting its supply chain. While specific products and new pricing details remain undisclosed, Sonos confirmed it is reassessing promotional strategies and has the flexibility to shift production between Vietnam and Malaysia as needed.
The tariffs in question stem from policies implemented during the Trump administration, which imposed a 20 percent duty on Vietnamese imports and a 19 percent levy on goods from Malaysia. These costs have already dented Sonos’ financial performance, reducing gross margins by $2.1 million and cash flow by $3.5 million in Q3 2025. The company anticipates even steeper losses in the fourth quarter, projecting a $5 million hit to gross margins and an $8 to $10 billion reduction in cash flow during the critical holiday shopping season.
To mitigate these challenges, Sonos has been diversifying its supply chain. Last year, the company expanded manufacturing operations in Vietnam and Malaysia, reducing reliance on Chinese facilities for U.S.-bound products. Currently, only a limited number of accessories, such as speaker stands, are still sourced from China.
Beyond adjusting prices and supply chains, Sonos is focusing on geographic expansion to drive growth. The company plans to invest in markets that currently contribute a small share of its revenue, aiming to reduce dependency on regions affected by trade disputes.
Financially, Sonos reported $344.8 million in revenue for Q3 2025, marking a nearly $100 million increase compared to Q4 2024. However, the past year has been turbulent for the audio brand. A major software update in 2024 caused widespread app malfunctions, delaying product launches as engineers scrambled to fix the issues. Leadership changes also shook the company, with former CEO Patrick Spence stepping down in early 2025. He was succeeded by Tom Conrad, a former Snap executive tasked with steering Sonos through its current challenges.
The upcoming price adjustments reflect Sonos’ efforts to maintain profitability amid external pressures. While the move may disappoint consumers, the company emphasizes its commitment to long-term stability by adapting to trade complexities and expanding into new markets.
