Sonova, the global market leader in hearing aid manufacturing reported a half-year core profit decline as the high expenses of launching its revolutionary AI-powered device, the Sphere Infinio, are affecting profitability. Nonetheless, the company is optimistic about potential growth and keeps annual targets in place while expecting stronger sales for the second part of the fiscal year when the launch costs should settle down.
The company launched its Sphere Infinio in August 2024, combining real-time artificial intelligence to improve the speech clarity in noisy environments. This new product presents Sonova with a competitive advantage, as the firm’s remaining industry competitors are unlikely to come out with similar AI-based products until late 2025. The Sphere Infinio has been a success; the product has comprised more than 50 percent of units sold within the Infinio brand since its launch.
Moreover, Sonova’s re-entry into Costco and solid sales thrust of its new product, puts it firmly ahead of competitors Amplifon and GN Store Nord in 2024. In efforts to enhance profitability, the company has implemented targeted cost-cutting measures, exercising a prudent approach in the U.S. market amid the dynamic regulatory environment.
CEO Arnd Kaldowski was upbeat, saying the AI-based hearing aid represents the next huge step forward in technology and will sustain long-term growth. The fact that launch costs have impacted short-term profitability does not undermine the fact that market demand is strong for the Sphere Infinio, which could further solidify Sonova’s market leadership.
Sonova looks forward to improving performance in the coming months based on its focus on innovation and strategic planning aimed at maximizing the early mover advantage in the AI hearing aid space.
