"...biggest fish in a tiny pond...a relatively small market..."
I could not disagree more. This space is poised to EXPLODE over the next couple of years.
Sonos is not bluetooth. It is not a 1:1 relationship between a device and a single speaker. It is not just a bunch of speakers around the house. It is a super well-designed ecosystem that changes how you listen to audio in a home. And it is incredibly flexible in how you set it up, ranging from a single speaker up to 32 zones.
For anyone interested in whole-home audio, or even a single speaker, look into Sonos. Their product reviews on every major retail site are phenomenal for a reason.
No doubt it's a great product. But even you imply that today it's a small market. You predict it will explode, but it hasn't yet. As soon as it begins to explode, don't doubt for a second that larger competitors will enter this market and do so very quickly and with the sort of scale that Sonos will have a lot of trouble staying ahead of.
Take Bose for example: they have 200 retail stores, a dedicated shelf in most Best Buys, Targets, and other electronics retailers, and a giant sponsorship agreement with the NFL. If the market was large enough, they would be in it and they would probably have more sales than Sonos does today. Quality of product and software aside, Bose simply has a really strong operations capability. That's just one example - many other companies out there with an even stronger position. I have to wonder, why is this market so quiet? The most likely explanation is that it is still small, and nascent.
Another explanation is maybe Sonos has patents which are keeping competitors out. If that is the case, then that is great for them. That also would explain the high prices.
I should add that I wish Sonos will see great success. I only commented on the price earlier to express my opinion that it is priced too high. I'm sure some economist working for the company has already crunched the numbers and can probably prove me wrong, but I suspect it would be best to sell for a lower price today to gain more users who might upgrade or add more speakers in the long run than it would be price all speakers high. They don't have a single lead-generating product for sale. That is a mistake, in my opinion.
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