The Sonos IPO can be improved after the addition of Airplay 2

It's rare that a simple software update could improve the prospects of an imminent IPO, but that could happen with Sonos, which announced Wednesday the support of Airplay 2 technology.

Unlike Bluetooth connections, need a proprietary application to connect hardware with streaming music sources and user libraries. While some users found the user interface of the Sonos app difficult, everyone generally recognized that it was the compromise needed to enjoy the superb sound quality of the Sonos speakers.

Over time, Sonos has left the music services like Pandora and Spotify speakers by allowing users to use streaming apps to select songs and playlists. Sonos also brought Amazon's Alexa technology to the speakers last fall. But as the company became the first third-party hardware manufacturer to integrate Apple Music, Sonos owners streaming from Apple still needed to make their music choices through this stunning app.

With the support of Airplay 2, the Sonos speakers will be able to play songs on multiple speakers of the Apple Music app and any other iOS application compatible with Airplay 2. The Airplay integration is available on most Sonos speakers, including Sonos One, Beam, Playbase and the second generation Play: 5. Supported speakers will also be able to use Siri to control Apple Music by voice.

The update is expected. Last fall, when Sonos added Alexa voice control to its speakers, he said that support for Airplay would come in 2018. Nevertheless, the timing of the new works well for Sonos, which was released on last week. Sonos should be valued between $ 2.5 billion and $ 3 billion after the IPO.

Sonos brand recognition could help its launch, as well as the success of the successful IPO of Roku, another maker of gadgets. But Sonos recorded a net loss of $ 14.2 million last year and its business turnover only increased by 10%, which would allow it to further increase its turnover in the approach of the public stock market

. . The lack of a user-friendly interface has discouraged some owners of Sonos from buying more speakers for their home or has prompted people to buy less-loyal but easier-to-use speakers like the L & # 39; 39; Echo. Sonos' small speaker sound design has received high praise, as has the loyalty of some users who install it in multiple rooms.

More importantly, Sonos strengthens its prospects by diversifying beyond Alexa. . Sonos warned in his IPO flyer that "it could be hurt if Amazon has ever disabled Alexa on devices, noting that he could do it anytime. With Airplay integration, Sonos adds Siri to his vocal assistant mix. The company also said support for Google Assistant is coming this year, although it has not happened yet.

Finally, the integration of Airplay will make the Sonos speakers more attractive to iPhone users. Amazon is estimated to have sold between 20 million and 30 million echoes. But Apple has 800 million iTunes accounts, the best indicator of the number of people who actively use their iPhones and iPads. The Airplay integration of Sonos will mean that for most of these iPhone users, its speakers should be a lot easier to use now – and at less than half the cost of the HomePod. Apple.