Sonos stock drops on report that Apple is purging third-party audio products from its stores

Tech

Source: Sonos

Sonos stock fell more than 2% in extended trading after Bloomberg reported that Apple has purged its online store of third-party audio products and instructed retail stores to do the same.

On Monday, a visit to the speakers and headphones category on Apple’s online store only displayed Apple products. Previously, Apple stores had carried headphones and speakers from third-party manufacturers going back years, especially if they closely integrated with Apple services like AirPlay, which enables users to stream music from an iPhone to a speaker without plugging in a cord. 

Apple manufactures a variety of audio products under its 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 a high-end set of over-ear headphones that will carry its own brand as well, TF Securities analyst Ming-Chi Kuo said earlier this year.

In the quarter ending in June, Apple reported $6.45 billion in other products revenue, which accounted for about 10% of the company’s sales. However, the sales category includes other products, such as Apple Watch, not just headphones and speakers. 

Brands affected include Logitech and Bose, in addition to Sonos. Physical Apple stores and its online store had previously sold speakers such as the Sonos SL speaker and Logitech’s Ultimate Ears Boom speakers. Apple also previously carried Bose noise-cancelling headphones. Apple started carrying Sonos’ latest speaker, the Sonos One SL, in January

Logitech cases, webcams, and keyboards are still available from Apple and its stock was down less than 1% after hours.

A Sonos representative declined to comment. Apple and Logitech did not immediately respond to requests for comment. 

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