(Credit: Tim Gideon/PCMag)
Sonos is delaying two product launches it had scheduled for later this year until the company can get its "app situation" under control.
In May, Sonos released a new version of its app, which was quickly met with harsh criticism. At first, Sonos went on the defensive, but Sonos CEO Patrick Spence was later forced to apologize. Fixing the app has now become a top priority at the company, Spence said during an earnings call this week.
"The app situation has become a headwind to existing product sales, and we believe our focus needs to be addressing the app ahead of everything else," Spence said. "This means delaying the two major new product releases we had planned for Q4 until our app experience meets the level of quality that we, our customers, and our partners expect from Sonos."
Spence called the decision "painful," but argued it will set our future products up for greater success over the medium to long term. It could cost the company between $20-$30 million.
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Spence didn't elaborate on what the two new products are, though later in the call, CFO Saori Casey said they "were ready to go" before the decision to delay them. The Verge suggests it could be a new soundbar. As 9to5Mac notes, the second device could be a rumored Apple TV competitor. It already launched its first pair of headphones this year, the Sonos Ace.
The app, meanwhile, has already seen nine software updates to address the problems. "We expect the app will get better every two weeks with each subsequent release, and we're committed to continuing to improve the experience on that same cadence and even faster where we can," Spence said on the call.
He argued that an app redesign was "was and remains the right thing to do, [but] our execution — my execution — fell short of the mark," Spence said on the call. "My push for speed backfired."