Could Apple Be the Next Owner of Sonos If its Board Decides to Sell?

Will the audio technology firm Sonos soon acquire a new proprietor? If yes, which tech conglomerate will it be?

A report published on Sunday (January 19) by Bloomberg News scrutinizes the firm’s challenges and ambiguous future. Following a chaotic app launch in May, Sonos’ market valuation is approximately $1.7 billion, a decline from over $5 billion during the pandemic.

The board, noted Bloomberg’s Mark Gurman, is likely to deliberate whether a sale would be prudent. Additionally, while Apple has been frequently viewed as a prospective buyer, Gurman opines it is improbable.

“If Apple genuinely aimed to expand its home audio sector, it already possesses the hardware, software, content and manufacturing expertise in-house,” he expressed. “It’s merely about wanting to execute things properly — something Apple is already addressing. Later this year, it will unveil its own home hub and an updated HomePod mini.”

The report further contends that bidders such as Meta, Google and Microsoft would also be illogical, whereas Amazon, Samsung and Spotify might contemplate an acquisition.

Among that group, Gurman mentions that Amazon appears to be the most fitting option, as the organization is predicted to enhance its device lineup with a focus on higher-end offerings. Sonos’ technology could act as the foundation for new Amazon Echo products powered by the forthcoming AI-driven Alexa digital assistant.

In examining Amazon’s initiatives to upgrade Alexa last week, PYMNTS mentioned that enhancing the assistant’s intelligence — something that has proven more challenging than anticipated — is not merely as straightforward as incorporating a large language model to supplant its simpler algorithms.

“Transitioning from one model to another is not as straightforward,” Mike Finley, chief technology officer and co-founder of AnswerRocket, remarked in a discussion with PYMNTS.

“Agentic AI is relatively more complex. It requires greater structure and direction to yield a better outcome. We will need to provide the initial ‘prompt’ as we used to, but there is additional effort needed to mold the AI behavior we desire.”

He further stated that for Alexa to enhance its utility, it must evolve sufficiently for individuals to rely on it for more significant tasks.

“Would you rely on Alexa to send money to the babysitter? What if it mistakenly adds a couple of zeros in the wrong direction? Agentic models can utilize resources such as the capability to access databases or financial accounts, websites, documents, spreadsheets. However, enabling Alexa with these tools necessitates obtaining consumer confidence to select ‘allow,’” Finley commented.