Sonos is Expanding to a Major Multibillion-Dollar Product Category

Sonos made an important announcement to launch a major product in a new multibillion-dollar category next year, following the quarterly report of the company.

Sonos to Launch a New Product

"The second half of the year, we will be launching a major product in a new multibillion-dollar category that will complement our current offerings, excite customers, and drive immediate revenue," CEO Patrick Spence shared during the conference call.

Moreover, the CEO also disclosed that the company is expecting over $100 million in revenue from the new product introductions this year. Meanwhile, the second half of next year will be focused on generating profit from the new product.

Previously, Bloomberg reported that Sonos has been planning to develop high-end headphones. The report also detailed that the lineup will include wireless and over-the-ear headphones with pairs possibly costing $300 or more.

However, the recent announcement of Sonos did not reveal what type of device the company has invested in. It is also possible that the company might launch it before the first half of 2024 ends.

Sonos Undergoes Strategy Shift

Meanwhile, there were also reports that Sonos is cutting off some jobs in product development as the company seeks a strategy shift. In an employee memo, chief product officer Maxime Bouvat-Merline shared that teams are separated per focus.

According to Bouvat-Merlin, there is currently a dedicated team for headphones, home products, portable speakers, and voice control. "The structure intends to give teams the focus and autonomy to make quicker, higher-quality decisions and execute with greater agility," he added.

After the announcement, Sonos shares quickly rose up to 18%. The possible launch of headphones could be a great opportunity for the company to boost its revenue.