During Sonos’ earnings call for the first quarter of 2023, CEO Patrick Spence took a clear swipe at competitors in the big tech sector, including Amazon, Google and Apple, for lacking creativity in recent months, The Verge reports.
None of Sonos’ main rivals in smart speakers released new audio hardware during the holiday quarter. And Apple’s second-generation HomePod appeared after it had already finished. But the company doesn’t seem as impressed with the devices Apple is offering.
Discounts on Sonos products during the holidays helped the company deliver strong earnings and beat Wall Street expectations for its fiscal first quarter. This is the first time Sonos has been able to offer these promotions in three years.
“We’ve gone through fiscal Q1, which is the height of the consumer electronics and audio season and, you know, it was… we’ve seen some of the traditional players go heavy discounting and, kind of like a traditional playbook for C.E. that, you know, we’ve always fought against and don’t really believe in. And then, you know, the big tech players, we just haven’t seen them active and we haven’t seen them, you know, doing anything interesting.”
Said Patrick Spence.
Google’s most recent home audio product is the aging Nest Audio, and Amazon’s fall 2022 hardware event went light on smart speakers: the company introduced a refreshed Echo Dot and added a new white color option for the top-of-the-line Echo Studio. The regular Echo speaker was last refreshed in 2020.
“I just feel like there’s others that are probably questioning their investments in this area, and we are investing in four new categories. We are going to raise the bar in our existing categories. I mean, we’ve got a lot going on,”
Sonos has said it will release a product in the first of those new categories sometime in 2023.
The company has placed greater emphasis on bundles that increase the percentage of households using multiple products. The average number of products for each Sonos household is currently 2.98. Sonos sees a $5 billion revenue opportunity if it can successfully transition single-product customers to a multi-device lifestyle.