Sonim Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -7.8%.
The historical rank and industry rank for Sonim Technologies's Gross Margin % or its related term are showing as below:
SONM'
s Gross Margin % Range Over the Past 10 Years
Min: 11.75 Med: 22.21 Max: 35.45
Current: 17.02
During the past 8 years, the highestGross Margin % of Sonim Technologies was 35.45%. The lowest was 11.75%. And the median was 22.21%.
SONM's Gross Margin % is ranked worse than 68.99% of 2412
companies
in the Hardware industry
Industry Median: 24.64
vs SONM: 17.02
Sonim Technologies had a gross margin of -1.22% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sonim Technologies was -7.80% per year.
Sonim Technologies Gross Margin % Historical Data
The historical data trend for Sonim Technologies's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Sonim Technologies's Gross Margin %
For the Communication Equipment subindustry, Sonim Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sonim Technologies's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Sonim Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sonim Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sonim Technologies had a gross margin of -1.22% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sonim Technologies Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sonim Technologies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sonim Technologies Inc is a provider of ultra-rugged mobile devices, including phones and accessories designed specifically for task workers physically engaged in their work environments, often in mission-critical roles. The company sells mobile phones, accessories, and solutions to AT&T, T-Mobile, and Verizon in the United States, and to Bell, Rogers, and Telus Mobility in Canada. The products include rugged mobile phones that can attach to both public and private wireless networks, industrial-grade accessories that meet the requirements of specific applications and software applications, and cloud-based tools that provide management and deployment services to customers. The company generates revenue from discounts, price protection, and customer incentives.
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