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Sonos Interim CEO Tom Conrad Discusses App Improvements, Future Hardware, and Company Turnaround

In a candid interview, Tom Conrad, the interim CEO of Sonos, addressed several critical issues facing the company, including the termination of the Symfonisk partnership with Ikea, ongoing app challenges, and the future direction of the brand. Conrad began by explaining the decision to end the Symfonisk collaboration with Ikea, which has been in place for eight years. While the speakers were popular, the partnership had been on a slow decline and represented a small-scale business for Sonos. Conrad aims to focus the company on a smaller number of high-value, differentiated products. He highlighted the recent price drop of the Era 100 speaker to $199 and the continued success of the Roam portable speaker, which often sells for less than $139. One of the most pressing issues for Sonos has been the rollout of the new app, which faced significant backlash from users. Conrad, who has been on the board since 2017 and has a strong background in software from his stints at Pandora and Snap, acknowledged three key mistakes: incomplete feature integration, user experience changes that alienated some users, and performance and reliability issues that were unknown at the time of launch. The company lacked a rollback mechanism, exacerbating the problems. To address these issues, Conrad reorganized the team, focusing resources on app and platform improvements. The latest release significantly enhances the experience with older devices and tackles esoteric networking issues, which affect a small but vocal portion of Sonos users. Conrad emphasized Sonos's commitment to making the app user-friendly and reliable, stating that the goal is for customers to have a seamless experience without needing to manage complex network setups. The app turmoil also affected the launch of the Sonos Ace headphones, which Conrad believes are a high-quality product. Despite initial poor sales, he remains committed to the Ace and plans to continue innovation in both hardware and software to differentiate it from competitors. When asked about potential paywalls for core features, Conrad was reassuring. He noted that hardware customers generally dislike ongoing subscription fees, using examples from BMW and Logitech. While Sonos may explore some form of ongoing relationship with customers, crucial features like grouping will remain free. This stance reflects Sonos's identity as a platform company, integrating both hardware and software to provide a seamless audio experience. Conrad also discussed the company’s strategic shift to focus on areas where Sonos can excel. Upon joining, he inventoried ongoing projects and prioritized them into 11 core themes, ensuring dedicated teams for each. This renewed focus has revitalized the company's morale and energy, bringing a sense of optimism and confidence. Despite the challenges, Conrad is optimistic about the future. He teased upcoming innovations in surround sound configurations and hinted at significant hardware and software developments over the next 18 months. Conrad aims to balance short-term stability and long-term vision, and he expressed enthusiasm about potentially becoming the permanent CEO. Industry insiders view Conrad's efforts positively, noting that his reorganization and focus on app reliability and performance are essential steps in Sonos's recovery. With a strong product lineup and renewed strategic direction, Sonos is poised to regain its footing in the smart audio market. Sonos, founded in 2002 and known for its high-quality multi-room audio systems, continues to navigate a competitive landscape, but Conrad’s leadership offers hope for sustained improvement and innovation.

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