Sonos, known for its high-quality audio products, has been struggling due to a software issue that has affected its mobile app. Bloomberg's Mark Gurman reports that the company is also postponing the launch of its first TV set-top box, codenamed Pinewood, until next March. The delay, originally scheduled for January, is because Sonos needs to prioritize fixing the app issues. The app issues have also affected Sonos' headphone sales. The company's new Ace headphones are reportedly underperforming, so production estimates have been revised downward. Sonos originally aimed to produce 900,000 to 1 million units per year, but that has now been scaled back to around 90,000 to 100,000 units per year.
These setbacks come at a difficult time for Sonos. The company's share price has fallen 32% this year, in contrast to the gains in the overall market. This year was supposed to be a period of expansion for Sonos with the launch of new products. However, the app crisis has forced the company to shift its focus to solving the software problems.
The new Sonos Ace headphones | Image credit — Sonos
While it's understandable that hardware issues cause delays, software issues are usually quicker to resolve. The fact that Sonos is still dealing with the fallout months later underscores the seriousness of the situation. The company has already had to lay off employees, likely due to the financial impact of the app issues.
It remains to be seen whether Sonos can recover from this setback. The company's reputation for high-quality audio products is still intact, but the app crisis has undoubtedly damaged its image. To regain the trust of its customers, it will be crucial for Sonos to effectively address the software issues and deliver the high-quality products it is known for.