Sonos inventory falls after report that Apple is eradicating third-party audio merchandise from its shops
Sonos stock fell more than 2% in extended trading after Bloomberg reported that Apple was cleaning its online store of third-party audio products and instructing retail stores to do the same.
When visiting the Speakers and Headphones category in the Apple Online Store on Monday, only Apple products were displayed. Previously, Apple stores had been carrying third-party headphones and speakers for years, especially when those were tightly integrated with Apple services like AirPlay, which let users stream music from an iPhone to a speaker without connecting a wire.
Apple makes a wide variety of audio products under the Beats brand, as well as products such as AirPods wireless earbuds and the HomePod smart speaker under the main Apple brand. Apple is working on high-end over-ear headphones that will also have their own brand, said TF Securities analyst Ming-Chi Kuo earlier this year.
For the quarter ended June, Apple had sales of $ 6.45 billion in other products, accounting for approximately 10% of the company's sales. However, the sales category also includes other products like the Apple Watch, not just headphones and speakers.
In addition to Sonos, the brands affected also include Logitech and Bose. The physical Apple stores and their online store had previously sold speakers like the Sonos SL speaker and Logitech's Ultimate Ears Boom speakers. Apple previously sold Bose noise-canceling headphones. Apple started wearing Sonos' newest speaker, the Sonos One SL, in January. Apple regularly adds and removes third-party products.
Logitech cases, webcams, and keyboards are still available from Apple and inventory has decreased less than 1% after hours.
Representatives from Apple and Sonos declined to comment. Logitech did not immediately respond to a request for comment.