"Create your own cocoon": Sonos releases first headphones

Flashback: The stock popped as much as 16% in early February when the company — known mostly for its home audio systems — delivered a strong earnings report.

• At the time, it teased the imminent launch of a brand new product category; on Monday, it dropped a strong hint via social media about it's "most requested product ever."

Zoom in: The Ace is a Bluetooth-first pair of headphones.

• It works out of the box without any apps, and with both Apple and Android devices.
• It delivers on the hope of lossless audio through hardwire connection (3.5mm to USB-C) and Bluetooth for Android devices that have Qualcomm Snapdragon Sound AptX for lossless technology.
• There are eight microphones in the headphones for adjustable noise cancellation.
• The headphones have a 30-hour battery life (even with noise cancelling on) with a 3-minute fast charge option that provides 3 hours of playback.

First impressions: Axios was among a handful of media outlets invited to try the Ace last week.

• At 11 ounces, the headphones themselves felt light and comfortable on the head, and over the ears.
• That's thanks to a flexible headband with a memory foam interior and ear pads that didn't feel like they were suctioned.
• And because Sonos hid the slider's hinge inside the housing of the speakers, there was little fear of adjusting the device while wearing it — something that typically causes hair, glasses, mask bands or fingers to become trapped with other headphones.
• Other design details that make the Ace appealing: Replaceable ear pad cushions, fingerprint resistant coating and physical buttons that make it easier for precise controls.
• During a living room scenario demo, it was easy to switch between the headphones and Sonos speakers connected to a TV by pressing one small button on the outside of the headphones.
• Sound-wise — and I'm not a headphones expert — the Ace provided a rich listening experience for both podcast dialog and music. Notably, the active noise cancellation was excellent.

Zoom out: Sonos, founded in 2002, has played mainly within speaker product categories.

• While the pandemic pushed Sonos' business to new record highs, the tides have changed.
• "Our existing categories of speakers and sound bars have been declining double digits year-over-year, whereas this is a $5 billion category that is growing by double digits every year," CEO Patrick Spence told Axios after our hands-on time.

The intrigue: Younger celebrities and consumers have been preferring the look of oversized headphones like the Apple AirPods Max (which are very similar to Sonos' Ace) to smaller earbuds.

• Aside from making a stylistic statement, Spence also thinks the pandemic has played a role in their popularity.
• "A lot of people got accustomed to having their own time, their me-time," he said.
• "Over-the-ears creates that opportunity to create your own kind of cocoon," while still being out and about in the world, he added.

What we're watching: At $449, the Sonos Ace comes in two colors — black and a very precise shade of white — and is $100 less than the listed price on Apple's website for the AirPods Max.

• That may be enough of a difference for customers looking for headphones in the premium price range, but it will likely be most appealing to customers who already have Sonos speakers in their homes. (They will work with Sonos Arc devices only at launch, with more compatibility to come.)
• After all, existing customers make up 45% of the company's annual sales, according to Sonos.