Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Finance

Finance

Sonos prepares for IPO with warnings

Sonos shows reluctance in anticipation of IPO

On Friday, smart-speaker manufacturer Sonos filed paperwork for its IPO, which is anticipated to raise $100 million. However, it did offer a piece of reluctance: Chinese tariffs.

Although Sonos has reported that the aluminum, steel, and other tariffs have not increased costs of their product, it definitely causes concern for the future. Friday’s tariffs are the most recent in the looming trade war with China, as the Trump administration imposed $34 billion worth of Chinese goods. Unsurprisingly, China fired back with its own tariffs on US goods.

Analysts don’t expect the tariffs to affect investors’ decisions on Sonos, but this kind of warning may appear more often if the trade war continues to escalate.

Regardless, the IPO will help Sonos defend its product against Apple and Amazon, which have their own smart speakers Apple HomePod and Amazon Echo, respectively. The company needs the help, as well, for it posted its first profit in 2018 with a $13.1 million profit. However, its sales are impressive, as it raked in nearly $993 million in revenue last year.

Sonos also warns potential investors, “Most of our competitors have greater financial, technical and marketing resources available to them than those available to us. As a result, they may develop competing products that cause the demand for our products to decline.”

However, Spotify posted a successful IPO even with competitor Apple Music and its seemingly unlimited resources, so that bodes well for Sonos. The success (or lack thereof) will be something to watch for in the coming month.

 

Featured image via Wikimedia Commons


Comment Template

You May Also Like

Business

US Singles Out Entities in China, UAE, and Turkey On February 23, the Biden administration announced new trade restrictions targeting 93 entities from Russia,...

Business

China’s Troubles Won’t Deter US Economy, Says Treasurer On February 23, U.S. Deputy Treasury Secretary Wally Adeyemo expressed concerns about China’s excess manufacturing capacity...

Breaking News

Trump Urges Alabama to Safeguard IVF Treatment Donald Trump has expressed support for the availability of In Vitro Fertilization (IVF) treatment, aligning himself with...

Security

Cybersecurity Concerns: Chinese Tech Company Allegedly Asserts Leaked documents have surfaced, suggesting that a Chinese cybersecurity firm, i-Soon, asserted its capability to hack the...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok