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I don’t think it matters that the Echo Plus is technically more advanced and that Amazon owns more of the stack. If the Sonos One looks better, is heavier, and
by TheSpiceIsLife 8y ago
I don’t think it matters that the Echo Plus is technically more advanced and that Amazon owns more of the stack.
If the Sonos One looks better, is heavier, and costs more, then Sonos might be able to sell the product further up-and-to-the-right on the Veblen good chart.
Maybe.
I’m not convinced going public for these one trick ponies does anything other than let the early investors cash out.
I’m just a layperson when it comes to these matters, but wouldn’t Sonos have been acquired if their product-market fit was believed to be worth something?
- BurritoAlPastor 8y agoAcquired by who? It's a luxury niche brand. Acquisition by one of the giants they integrate with (Apple, Amazon, Spotify, etc) would inevitably result in vendor lock-in (Apple buys them and now Amazon Music doesn't work anymore), which would be devastating to their reputation and customer sat. A "neutral" giant (LG?) could pick them up, but why? Who wants to diversify into luxury home stereo? That leaves major audio companies (Sennheiser? Bose?), but those are mostly already luxury brands, and cobranding ("Sonos by Sennheiser") could get complicated. The nature of the market Sonos is working in means that whatever P/M fit they have is potentially compromised by being acquired. Weird, but that's luxury goods for ya.
- TheSpiceIsLife 8y agoYeah true, thanks for your taking the time to point that out.
- samatman 8y agoLVMH perhaps?
- TheSpiceIsLife 8y agoYour comment prompted me to read the LVMH Wikipedia article.[1] I didn’t realise the group owned so many labels. 1. https://en.wikipedia.org/wiki/LVMH#Subsidiaries https://en.wikipedia.org/wiki/LVMH#Subsidiaries
- skinnymuch 8y agoAlso didn’t know owner Arnoult catapulted to 4th richest in the world after last year.
- asah 8y agoVerizon/Yahoo