Business
Sonos tries to get its groove back after upsetting loyal customers
Heath Evans really needed his Sonos speakers to work.
He and his wife counted on one of the three wireless devices he owned to play lullabies to help put their baby daughter to sleep.
So, in May, when Sonos released a new controller app that was so riddled with problems he couldn’t get the speakers to work, Evans was angry.
“We just need reliable music that plays lullabies while we’ve got a screaming baby trying to go to sleep,” said Evans, a 40-year-old entrepreneur in Australia who had received the speakers from his wife last year for his birthday.
Fed up with the time Sonos has taken to fully fix the app, the family has given up on trying to use the devices, which cost about $1,300. They’ve turned instead to a cheap speaker to stream music for their daughter’s bedtime.
Evans is among a legion of unhappy customers who are upset with Santa Barbara-based Sonos. Today, the company is still trying to mitigate the fallout from the app debacle and salvage its reputation as a powerhouse in the audio industry offering an array of portable, high-quality wireless speakers. The hit to Sonos’ brand has swung the door open for rivals such as Amazon, Bose, Apple and other tech giants that make smart speakers to capture more of the business’ customers.
“Sonos knows it is on precarious ground because while it has built up customer goodwill, it plays in a highly competitive space,” said Dipanjan Chatterjee, vice president and principal analyst at research firm Forrester in an email.
Over its more than 20 years, the publicly traded company has weathered tough times before, including the 2008 financial crisis. But its latest misstep is a multimillion-dollar blunder that has forced it to delay the launch of new products and lower sales projections for the pivotal final months of the year when they otherwise would be looking to capitalize on a holiday sales boost.
Sonos said it’s spending $20 million to $30 million to fix the app and provide more customer support — an emergency investment it hopes will win back the trust of customers and steady its financial footing. In the last six months, the company’s stock, which ended trading Thursday at $11.58, has fallen 39%. In the quarter ending June 29, it reported $397 million in revenue, a 6% increase over the same period last year, and $3.7 million in net income.
This week, the company outlined a plan to make sure it doesn’t have similar failures in the future, including improvements to how it tests products before they’re released, the appointment of a “quality ombudsperson,” creation of a customer advisory board, and extending its warranty for certain items, such as its home theater and plug-in speaker products. Executives agreed to forgo their annual bonuses for 2025 unless their turnaround plan succeeds.
“There are many wonderful brands that have made missteps, have gone out and apologized to fix things and won back the trust of their customers,” said Eddie Lazarus, Sonos’ chief strategy officer. “We’re going to be the next one in that line.”
Sonos was founded in 2002 by a group of entrepreneurs who set out to build something that is commonplace today but pioneering at the time: a wireless audio system that would enable people to play music over the internet anywhere in their home. They were working years before the start of popular streaming services such as Spotify and Pandora, as well as the launch of the iPhone.
In January 2005, the company released the ZP100, a device with a remote control that allowed people to stream music through their computers. The product garnered positive reviews including from Walt Mossberg, a tech columnist at the Wall Street Journal, who called the Sonos music streaming system “easily the best music-streaming product I have seen and tested.”
As in many startups, Sonos executives were worried about competitors . The first song played publicly on the ZP100 was the Beastie Boys’ “No Sleep Till Brooklyn,” a tune engineers could relate to as they hustled to improve the quality of the device before its release.
Appearing on the podcast “How I Built This with Guy Raz” this year, one of the founders, John MacFarlane, recalled the pressure he and others felt to unveil their first product in time for the holiday season — a goal they ultimately missed. Releasing the ZP100 before it was ready would have “killed the company,” he said.
“You had to have a great positive first experience if you’re going to build the brand on word of mouth,” MacFarlane said.
The challenge of striking a balance between moving fast and having a good product is still a challenge that Sonos and other tech companies have grappled with throughout their history. Apple faced backlash from its customers in 2012 when it released a Maps app that contained inaccurate driving directions, Chatterjee said. But Sonos is in a “trickier” spot because the app is part of what makes the company’s audio system function seamlessly for the 15 million households that use its products globally.
“Without that seamlessness, there is no ease of use, and without the ease of use, the company cannot command its premium price with consumers or its premium position in the market,” he said.
Sonos Chief Executive Patrick Spence has acknowledged that the company has let down its customers. He told investors in August after Sonos released its quarterly earnings that the company had to rebuild the app to address “performance and reliability issues” and position the company for growth as the company expands “into new categories and move ambitiously outside of the home.” Sonos released its first pair of headphones in June.
For some Sonos customers like Evans, Sonos’ response has been “tone deaf,” underscoring the trust the company still needs to win back.
“Why on earth would I care about a quality ombudsman? I’m a guy sitting in Melbourne nursing a baby in Australia with a speaker that doesn’t work,” he said.
Despite looking at the possibility of bringing back the previous version of the Sonos app, Lazarus said the company ruled it out because there were a lot of “technical concerns.” While the company has said it’s reintroduced many of the features from the old version of the app that were missing in the new one, he acknowledged the company still has work to do. He couldn’t say when the app will be completely fixed.
Other customers have found workarounds to still stream their music from their Sonos speakers even if the app doesn’t work.
Fearing issues with the rollout of the new app, 32-year-old product designer Matthew Mocniak said, he disabled his Sonos system from automatically updating the app but the solution worked only temporarily.
Mocniak, who lives in North Carolina and has spent more than $2,000 on Sonos speakers, said he’s able to stream music through Apple’s Airplay feature.
As someone who works in the tech industry, Mocniak knows rebuilding software can be harder than it looks. “It’s very easy to promise certain features or certain deadlines,” he said. “It’s also easy to forget that there are people responsible for that stuff on the other side.”
Ben Brown, a 49-year-old creative director in the United Kingdom, said his Sonos app still says his speakers are not connected. Instead, he’s been using Amazon’s Alexa assistant to play music on the speakers.
Brown, who also purchased multiple Sonos speakers for his home, said he was so frustrated that he felt the urge to throw the Sonos Roam portable speaker in the sea while on vacation.
“I would never have done it, really, but that’s how angry it makes you,” he said. “It’s those moments where you just want to take a speaker outside, eat some dinner and listen to some music.”
Business
This company tries to recycle the really difficult plastics
SAN LEANDRO — A start-up recycling company has a message for its potential, environmentally conscious customers: Don’t send your problem garbage to the landfill; put it on your front porch.
The company is Ridwell, and if you drive the residential streets of the San Francisco Bay Area or Los Angeles, you’re likely to see the company’s signature white metal boxes on porches.
The boxes are for empty tortilla chip and plastic produce bags, used clothing, light bulbs and batteries. In some locations, polystyrene peanuts. All the things you’re not supposed to put in the blue recycle bin, but wish you could.
The Seattle-based waste service is geared toward people who worry their waste will end up in the landfill, or get exported to a developing country in Asia. They sort their waste into colorfully labeled canvas bags the company provides, and wait for a Ridwell pickup.
“Sorting is our special sauce,” said Gerrine Pan, the company’s vice president of partnerships. Part of the reason the company is successful at finding markets — or buyers — for its waste, she said, is that it’s sorted and pretty clean (unlike the food-contaminated jumble of waste that gets stuffed in many blue bins).
The company promises to distribute all that waste to specialty recyclers, manufacturers, even thrift shops.
Bagged recyclables sit in boxes at the Ridwell warehouse in San Leandro.
But critics say the boutique waste hauler is not accomplishing anything environmentally useful and is selling the public a myth: that these plastics — multilayer plastic film, plastic bags, polystyrene — can be taken care of responsibly. The service would be benign, they say, if it stuck to the delivery of materials, such as light bulbs and batteries, that can be recycled.
Most local waste haulers don’t accept batteries and light bulbs because they can pose a hazard to workers and equipment.
The base Ridwell membership is $20 a month. For that, a driver will come by every two weeks and take the presorted bags to a warehouse where they’re emptied, the contents stacked and collected, until there’s enough to deliver to a facility that will take it.
Sorted recyclable items await transport at the Ridwell central warehouse.
Company lore is that founder Ryan Metzger and his son were frustrated that so many things weren’t accepted by their local hauler for recycling. The two sat down and researched where to take the stuff, then decided to scale up and serve their neighbors.
The company has since expanded to Vancouver, Wash.; Portland, Ore.; San Francisco; Los Angeles; Denver; Austin, Texas; Minneapolis and Atlanta. It now boasts more than 130,000 customers nationwide.
Most of the waste is delivered locally. But some of it travels hundreds, if not thousands of miles.
For instance, multilayer plastic bags — those that hold snack chips, candy and coffee beans — are the scourge of municipal garbage haulers because they cannot be recycled, and if put in the blue bins, can damage mechanical sorting machines. Ridwell, however, found Hydroblox, a company that melts the multilayer films into hard, plastic bricks that can be used for drainage projects in landscaping and road construction.
But this arrangement highlights some of the limitations of the nascent industry. Hydroblox owner Ed Greiser said he can take only so many chip bags. The company is growing, but it’s still pretty small, and he’s typically maxed out on the bags.
Ridwell workers sift through recyclables.
“This article is going to be a nightmare for me,” he told a Times reporter, because it’s likely to attract a parade of unsolicited garbage trucks looking to dump their bags. “I’m not the solution.”
In addition, Greiser’s two facilities are in Pennsylvania, more than 2,700 miles from most West Coast pickup points, a steep transportation cost for a plastic bag that could instead go 20 miles to a local landfill.
Ridwell also has recently expanded to serve customers outside its pickup cities. It sends special plastic bags to these far-flung subscribers so they can sort their waste and ship it back.
Again, critics say the company’s decision to operate a service that is dependent on plastic bags and requires extensive transport undermines their environmental bona fides. And they worry that a narrative suggesting all waste can be dealt with responsibly is false and misleading. That misconception, they say, contributes to the glut of plastic piling up in our rivers and oceans, and inside our bodies.
“There is typically a reason why a given product isn’t being recycled through curbside collection, and it usually isn’t for lack of effort by cities and counties,” said Nick Lapis, director of advocacy for Californians Against Waste. “Most of the material being collected by boutique collection services like Ridwell are either very difficult to manage or lack strong recycling markets.”
Manufacturers of plastic packaging, not consumers, should pay for recycling products and packaging at the end of their life, he said. For regular people, “having to pay an extra fee to handle the unrecyclable plastic packaging that is thrust upon us every day is antithetical to every concept of producer responsibility.”
Earlier this month, the anti-plastic group Beyond Plastics published a disparaging report on boutique waste haulers, including Ridwell, accusing them of providing cover for plastic and packaging manufacturers who want people to believe their waste is being recycled.
A Ridwell employee inserts a bag of recyclables into a bailer at the San Leandro warehouse.
Ridwell offered a visitor a tour of its Bay Area warehouse in San Leandro. The spacious facility behind a Home Depot and Walmart was crowded with steel drums filled with alternating layers of batteries and fire-retardant pellets, boxes of light bulbs and piles of used clothes, all destined for recyclers, upcyclers and thrift stores.
While the public may think of recycling as a largely physical process, it’s actually a market: a function of how well a material can be profitably turned into something else.
Boxes of clothing await transport.
Metzger, Ridwell’s chief executive, said some of the material his company collects can be sold. Some of it is given away, “and some we pay to have responsibly processed.” The more technically challenging the plastic, the more likely Ridwell will have to pay to deal with it, he said.
He said the company vets all the places it sends its waste, giving preference to those that use items a second time over those that melt them down or shred them to make them into something else. It also gives preference to partners that are local.
He said his company is “careful not to present plastic recycling as a cure-all,” and it turns away some materials, for example vinyl shower curtains, “because we don’t have a downstream partner we can stand behind.”
And while Metzger agrees with many of Beyond Plastic’s concerns, he has observed that “when customers actively sort and see which items require special handling, it often increases their awareness of where plastic waste is coming from in their own lives … [leading] them to change purchasing habits and avoid certain packaging altogether.”
Business
Black Altadena fire victims clash with Edison over compensation
Outside a hall where Southern California Edison was celebrating Black History Month on Friday, a group of Altadena residents stood on the sidewalk, waving signs and talking of the homes and family members they lost in last year’s Eaton fire.
“They’re in there celebrating Black history and they’ve destroyed a Black town,” said Nicole Vasquez of My Tribe Rise, which helped organize the protest.
The Jan. 7, 2025 fire destroyed thousands of homes, including the majority of homes in west Altadena, a historically Black community. All but one of the 19 people who died were in west Altadena.
“If Edison’s tower did not ignite the fire, Altadena would still be there,” said Trevor Howard Kelley, who lost his 83-year-old mother, Erliene, in the fire.
Kelley, his daughter and two granddaughters had been living with his mother before her home was destroyed, he said.
The Black Altadena residents are part of a larger coalition that is asking Edison to advance each family who lost their home $200,000 in emergency housing assistance. They say that more than a year after the blaze many wildfire survivors are running out of the funds they had received from insurers.
The group protesting Friday also called for transparency from Edison. The company has said it believes it is likely its equipment caused the fire but has continued to deny it did anything wrong.
“We just want the truth,” said Felicia Ford, who lost her house in the fire. “What’s wrong with saying, ‘We got this wrong.’”
Scott Johnson, an Edison spokesperson, said Friday that the company continued to believe its voluntary compensation program was the best way to help victims of the fire. Edison has promised to quickly review each victim’s claim and pay it swiftly if approved.
Families who lost their homes can receive hundreds of thousands of dollars under the program, while those with damaged homes receive lesser amounts.
But many survivors say they don’t believe the offered amounts fully compensate their losses. And to receive the money, victims must agree not to sue — which many are not willing to do.
“We recognize the incredible struggles the community has faced,” Johnson said. “The intent of the program is to reach final settlements to allow the community to rebuild and move on.”
The investigation into the cause of the fire has not yet been released. Edison has said a leading theory is that its century-old transmission line in Eaton Canyon, which had not carried electricity for 50 years, somehow became reenergized and sparked the fire.
Company executives said they did not remove the old line because they believed it would be used in the future.
Tru Williams said he just wants to get his parents back home.
(Myung J. Chun / Los Angeles Times)
In December, state regulators ordered Edison to identify fire risks on its 355 miles of out-of service transmission lines located in areas of high fire risk and tell regulators how executives planned to use the lines in the future.
This week, Edison disclosed that the Los Angeles County district attorney was investigating whether Edison should be criminally prosecuted for its actions in the fire.
West Altadena became one of L.A.’s first middle-class Black neighborhoods in the 1960s, partly because discriminatory redlining practices for years kept Black homebuyers from settling east of Lake Avenue.
Heavenly Hughes, co-founder of My Tribe Rise, told the crowd she had lived in Altadena for 50 years.
“I was raised in a thriving working-class community and they have destroyed that community,” Hughes said, referring to Edison.
Added Ford, “The people making these decisions aren’t suffering at all. They’re still getting their paychecks, bonuses and stock options.”
Business
Global leaders and businesses react to more U.S. tariff swings
SEOUL — Governments and companies around the world scrambled Saturday to determine the impact of the U.S. Supreme Court ruling that struck down most of President Trump’s sweeping tariffs and his response with a new round of import taxes.
The latest twist in the U.S. tariff roller-coaster ride, launched when Trump returned to office 13 months ago and upended dozens of trading relationships with the world’s biggest economy, roiled trade officials from Mexico to South Korea to South America and beyond.
South Korea’s Trade Ministry called for an emergency meeting Saturday to understand the new landscape. Some specific exports to the U.S., like automobiles and steel, aren’t affected by the U.S. high court decision. Those that are affected will probably now be covered by a new tariff imposed by an executive order Trump signed Friday. Trump announced Saturday morning that he would raise that 10% tariff to 15%.
In Paris, French President Emmanuel Macron hailed the checks and balances in the United States, praising the “rule of law” during a visit to a Paris agricultural fair: “It’s a good thing to have powers and counter-powers in democracies. We should welcome that.”
But he cautioned against any triumphalism.
Officials were going over the language of bilateral or multilateral deals struck with the U.S. in recent months, even as they braced for new swings and Trump’s swift announcement of new tariffs.
“I note that President Trump, a few hours ago, said he had reworked some measures to introduce new tariffs, more limited ones, but applying to everyone,” Macron said. “So we’ll look closely at the exact consequences, what can be done, and we will adapt.”
Mexico braces, adapts
Mexico’s secretary of the economy, Marcelo Ebrard, urged “prudence” Friday in the aftermath of the U.S. Supreme Court ruling. “We have to see where this is going,” Ebrard told reporters. “We have to see what measures [Washington] is going to take to figure out how it is going to affect our country. “
Amid widespread concern about tariffs in Mexico — the United States’ major commercial partner, with almost $1 trillion in annual two-way trade — Ebrard cautioned: “I tell you to put yourselves in zen mode. As tranquil as possible.”
Mexican President Claudia Sheinbaum, when asked about the tariffs, said, “We’ll review the resolution carefully and then gladly give our opinion.”
Ebrard said he plans to travel to the United States next week to clarify matters.
Last year, Ebrard noted, Mexico managed to stave off Trump’s threats to impose a 25% across-the-board levy on all Mexican imports.
However, Mexico has been pushing back against Trump administration tariffs on imports of vehicles, steel and aluminum, among other products.
Among other impacts, the Supreme Court voided so-called fentanyl tariffs on Mexico, China and Canada. The Trump administration said it imposed those levies to force the three nations to crack down on trafficking of the deadly synthetic opioid.
About 85% of Mexican exports to the United States are exempt from tariffs because of the United States-Mexico-Canada Agreement. The accord extended a mostly free-trade regimen among the three nations, replacing the North American Free Trade Agreement.
The three-way pact is scheduled for joint review starting July 1. That date marks six years since the agreement was signed during the first Trump presidential term.
In Ciudad Juárez, Mexico, along the Texas border, Sergio Bermúdez, head of an industrial parks company, discussed Trump’s plan for a new tariff. Trump, he said, “says a lot of things, and many of them aren’t true. All of the businesses I know are analyzing, trying to figure out how it’s going to affect them.”
The impact could be felt especially in Juarez: Much of its economy depends on factories producing goods to export to consumers in the U.S., the result of decades of free trade between the U.S. and Mexico.
The policy swoons in the United States over the last year have made many global business leaders cautious, as they struggle to forecast and see investment take a hit.
CEO Alan Russell of Tecma, which helps American businesses set up operations in Mexico, has seen his job grow increasingly complicated over the last year — his company’s workload has surged as much as fourfold as it grapples with new import requirements. He worries the last U.S. moves will only make things more difficult.
“We wake up every day with new challenges. That word ‘uncertainty’ has been the greatest enemy,” said Russell, who is American. “The difficult part has been not being clear what the rules are today or what they’re going to be tomorrow.”
A ‘good decision’
Swissmem, a top technology industry association in Switzerland, hailed the Supreme Court ruling as “good decision,” writing on X that its exports to the U.S. fell 18% in the fourth quarter alone — a period when Switzerland was facing much higher U.S. tariffs than most neighboring countries in Europe.
“The high tariffs have severely damaged the tech industry,” Swissmem President Martin Hirzel said on X, while acknowledging the dust is far from settled. “However, today’s ruling doesn’t win anything yet.”
Times staff writer Patrick J. McDonnell in Mexico City contributed to this report, as did Associated Press writers Tong-Hyung Kim in Seoul and Megan Janetsky in Mexico City. AP writers María Verza and Fabiola Sánchez in Mexico City, Samuel Petrequin in London and Jamey Keaten in Lyon, France, also contributed.
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