Sonos Is Raising Prices in 2025 Due to Tariffs

Sonos is raising prices this year to make up for tariff expenses

Sonos has announced plans to increase prices across its product lineup later this year. This move is intended to lessen the financial blow from tariffs, a detail revealed alongside the company’s third-quarter 2025 financial results. While specific products and their new price points haven’t been disclosed yet, Sonos stated it’s reevaluating its promotional strategies and has the flexibility to shift production between Vietnam and Malaysia if needed. It’s worth noting that tariffs of 20 percent on imports from Vietnam and 19 percent on imports from Malaysia were imposed by the Trump administration.

In addition to price adjustments, Sonos aims to boost growth by diversifying its geographical reach and strengthening its presence in markets that currently contribute less to its overall revenue. The company had already taken steps last year to diversify its supply chain, leading to the establishment of manufacturing facilities in Vietnam and Malaysia. Currently, Sonos relies on Chinese factories primarily for a limited number of accessories, such as speaker stands, for products destined for the U.S. market.

Despite these efforts, tariffs significantly impacted Sonos’ financial performance in the third quarter of 2025, reducing its gross margin by $2.1 million and its cash flow by $3.5 million. Looking ahead to the fourth quarter, which includes the crucial holiday shopping season, Sonos anticipates tariffs will further reduce its gross margin by $5 million and impact its cash flow by an estimated $8 to $10 million.

Overall, Sonos reported a revenue of $344.8 million for the third quarter, a notable increase from its fourth-quarter 2024 revenue. The year 2024 proved challenging for the company, marked by a major app update that caused widespread issues and subsequently delayed product releases while fixes were implemented. This period of difficulty also saw a leadership change, with former CEO Patrick Spence stepping down at the start of 2025 and ex-Snap executive Tom Conrad taking the helm.