Sleep Number Introduces New c1 Smart Bed, Providing Smart Adjustability at an Exceptional Value

Rhea-AI Summary

Sleep Number (Nasdaq: SNBR) has launched the c1 smart bed, priced at $999 for a Queen size, as part of their Classic Series. The c1 offers adjustable firmness, breathable technology, and personalized sleep insights. This model aims to deliver quality sleep benefits at an affordable price, complementing the existing c2 and c4 smart beds priced at $1,299 and $1,899 respectively. Sleep Number's smart beds are designed to address common sleep issues like temperature regulation and personalized comfort for couples. The c1 smart bed is now available online and in stores, coinciding with Sleep Number's annual sale event.

Positive

• New c1 smart bed priced at $999, offering affordable entry into smart sleep technology.
• Three Sleep Number smart beds now available for under $2,000, catering to value-conscious consumers.
• Features adjustable firmness for each side, providing individualized comfort for couples.
• Incorporates breathable technology to regulate temperature, addressing common sleep issues.
• Personalized sleep insights via the Sleep Number app, leveraging AI and sleep science.
• Compatibility with Sleep Number's FlexFit adjustable bases, enhancing user comfort.
• Introduction aligns with Sleep Number's annual sale, potentially boosting sales figures.

Negative

• Introduction of lower-cost models may impact perception of Sleep Number's premium brand.
• Potential cannibalization of sales for higher-priced models like the c2 and c4.
• Challenges in differentiating the c1 from higher-end models in terms of perceived value.
• Initial investment in AI and smart technology may not yield immediate financial returns.

Insights

Market Research Analyst

The introduction of the Sleep Number c1 smart bed at a price point under $1,000 is a strategic move aimed at capturing the budget-conscious segment of the market. With three smart beds now available for less than $2,000, Sleep Number is expanding its reach to a wider demographic. This price point diversification could appeal to a broad audience who may have previously found the brand's offerings too expensive.

This move aligns with the ongoing trend of affordable luxury, where consumers seek high-quality products with advanced features at a more accessible price. The impact on Sleep Number's market share could be significant, as it positions the company against lower-cost competitors while still promoting its unique selling points like adjustable firmness and personalized sleep insights. Overall, this strategy could drive higher sales volumes and potentially improve market penetration.

Financial Analyst

Launching a smart bed at a lower price point could positively influence Sleep Number's financial performance by attracting a new customer base. The company's emphasis on affordability while maintaining advanced features suggests a well-thought-out approach to balancing cost and innovation. This could lead to increased revenue and improved profit margins, especially if the newly introduced c1 model gains popularity among consumers.

Furthermore, the timing of this launch with the announcement of the Lowest Prices of the Season sale indicates a tactic to boost short-term sales through promotional offers. Investors should be mindful of the potential increase in revenue during this period and its subsequent impact on quarterly financial results. However, the long-term sustainability of these sales figures will depend on the continued consumer interest and satisfaction with the new product lineup.

Tech Expert

The Sleep Number c1 smart bed integrates advanced technologies like temperature control and personalized sleep insights at a lower price point, making high-tech sleep solutions more accessible. The inclusion of features such as a ceramic gel layer for heat dissipation and AI-driven sleep health insights positions the c1 as a technologically advanced yet affordable option.

For tech-savvy consumers, the ability to adjust firmness and receive sleep quality data through an app can be a compelling reason to invest in this product. Additionally, compatibility with Sleep Number's smart adjustable bases offers an enhanced user experience, further differentiating this smart bed from traditional mattresses. By leveraging these technological advancements, Sleep Number strengthens its competitive edge in the smart bed market, potentially driving innovation adoption among a broader audience.

New innovation designed to help even more couples achieve quality sleep; Sleep Number now offers three smart beds under $2,000

MINNEAPOLIS--(BUSINESS WIRE)-- Today, Sleep Number Corporation (Nasdaq: SNBR), the sleep wellness technology leader, unveiled its new Sleep Number® c1 smart bed at only $999 (Queen). The brand’s best value, the c1 offers the same signature adjustable firmness on either side and sleep technology features as Sleep Number’s higher-end smart beds. For under $1,000, sleepers receive their ideal comfort and support; breathable technology that draws heat away from the body; and personalized digital sleep health insights to help improve sleep over time. And, because only Sleep Number® smart beds are designed specifically for the differing needs of couples, both sleepers can tailor their preferences to meet their unique sleep needs; in fact, Sleep Number Smart Sleepers get 28 minutes more restful sleep per night.

The brand’s best value, the c1 offers the same signature adjustable firmness on either side and sleep technology features as Sleep Number’s higher-end smart beds. For under $1,000, sleepers receive their ideal comfort and support; breathable technology that draws heat away from the body; and personalized digital sleep health insights to help improve sleep over time. (Photo: Business Wire)

“We are excited to introduce the c1 smart bed – and offer three of our smart beds under $2,000 – to meet the needs of today’s value-conscious, scrutinizing consumer,” said Shelly Ibach, Chair, President and Chief Executive Officer, Sleep Number. “Quality sleep is an essential part of everyone’s health and wellbeing. Only Sleep Number offers science-backed smart beds that deliver unmatched benefits: individualized sleep for couples, digital health features, active and passive temperature control and adjustable firmness. We’ve strengthened our smart bed portfolio with a superior sleep innovation under $1,000 and are fulfilling our purpose to improve the health and wellbeing of society through higher quality sleep.”

The c1 smart bed joins Sleep Number’s popular Classic Series smart bed collection, known for its comfortably affordable price points. Rounding out the Classic Series collection are the Sleep Number®c2 smart bed ($1,299, Queen) and the c4 smart bed ($1,899, Queen), offering the brand’s smart adjustability, breathable comfort and cushioning support at a great value. With the introduction of the c1, Sleep Number now offers three unique smart beds for under $2,000 (Queen sizes). Sleep Number c1 smart bed features include:

• Temperature Benefits: The c1 smart bed helps alleviate one of the most common barriers to high quality sleep: temperature. According to Sleep Number data, 80% of couples report one or both partners sleep too hot or cold.** A ceramic gel layer in the c1 smart bed draws heat away for breathable comfort.
• Individualized Comfort: Sleep Number smart beds allow each sleeper to choose their ideal level of firmness -- their Sleep Number^® setting -- and contour to the body to relieve pressure points. Throughout the night, the smart beds then deliver effortless adjustability to keep both sleepers comfortable and helping them achieve their best sleep every night.
• Personalized Sleep Health Insights via the Sleep Number App: By combining artificial intelligence (AI) technology and sleep science, which "learn” from each sleeper over time, the Sleep Number smart bed delivers personalized health and wellbeing insights to each sleeper. The smart bed monitors vital personal health data and sleep trends and continuously analyzes and personalizes sleep insights in partnership with leading sleep health experts. Additionally, the app was newly updated to offer additional customer service features and integrate with Sleep Number’s rewards program, offering a turnkey solution for all customers’ Sleep Number needs.
• Compatibility with Sleep Number’s Smart Adjustable Bases: The accompanying FlexFit™ smart adjustable bases elevate each sleeper’s experience and fit individual comfort preferences. The bases feature Partner Snore™ technology to help alleviate snoring^***, under bed lighting and head and foot adjustments.

The new Sleep Number c1 smart bed is available now at sleepnumber.com and at Sleep Number^® stores.

Additionally, today marks the start of Sleep Number’s annual Lowest Prices of the Season sale, which runs through July 7, 2024. Science-backed innovations that will be on sale include:

• Sleep Number smart beds starting at $999
• 30% off Sleep Number’s most popular smart bed, the i8 smart bed, featuring advanced temperature balancing and plush, pressure-relieving support
• $1,000 off the Sleep Number Climate360^® smart bed, the only smart bed in the world that actively cools, warms, and effortlessly responds to the needs of both sleepers.^§
• 25% off the temperature balancing True Temp bedding and pillows collection. Sleepers can take the PillowFit^® quiz to find their perfect pillow size and shape
• Up to 40% off furniture, designed to complement any bedroom décor

*Based on average SleepIQ^® data from 8/1/21 - 2/28/22 of sleepers engaging with Sleep Number^® setting, SleepIQ^® data and FlexFit™ adjustable base vs. sleepers who have those features but didn’t similarly engage with them.
**Results from a 2020 Sleep Number survey of 1,004 respondents reported they or their partner sometimes sleep too hot or too cold.
***Available with selected FlexFit™ adjustable bases. Partner Snore™ technology may temporarily relieve common, mild snoring in otherwise healthy adults. Partner Snore™ technology is available with Split King and FlexTop^® King mattresses. Bluetooth 4.x compatible device required. Not included.
^§Based on use of temperature features and our proprietary Responsive Air^® technology.

About Sleep Number Corporation

Sleep Number is a sleep wellness technology leader. Our life-changing innovations revolutionized the commoditized sleep industry and awakened consumers to the possibility of proven quality sleep. Sleep Number^® smart beds integrate physical and digital innovations for unparalleled comfort; they automatically respond to the needs of each sleeper with ideal firmness, position and temperature benefits. To date, we have improved over 15 million lives, and 94% of smart sleepers report better sleep versus a non-smart bed.^T

We are guided by our purpose to improve the health and wellbeing of society through higher quality sleep. This is demonstrated through lifelong relationships with millions of highly engaged Smart Sleepers and partnerships with global research institutions who use our 27 billion hours of longitudinal data to study sleep’s impact on health. Furthermore, our purpose is exemplified through 4,000 mission-driven team members; they passionately innovate to drive value creation through our vertically integrated business model, including exclusive direct-to-consumer selling in over 650 stores and online.

To learn more about life-changing, individualized sleep, visit a Sleep Number^® store near you, our newsroom and investor relations sites, or SleepNumber.com.

^T Based on self-reported data from 90 incentivized, first-time users 3/23-6/23; 6 weeks with smart bed features disabled, then 6 weeks enabled.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240616348099/en/

Media

Nichole Teixeira

Sleep Number Public Relations

Nichole.Teixeira@sleepnumber.com

Source: Sleep Number Corporation

FAQ

What is the price of Sleep Number's new c1 smart bed?

The new c1 smart bed is priced at $999 for a Queen size.

What features does the Sleep Number c1 smart bed include?

The c1 smart bed includes adjustable firmness on either side, breathable technology, and personalized sleep insights.

How many Sleep Number smart beds are available under $2,000?

Sleep Number now offers three smart beds under $2,000: the c1, c2, and c4 models.

When is Sleep Number's annual sale event?

Sleep Number's annual Lowest Prices of the Season sale runs through July 7, 2024.

What technology integration does the c1 smart bed provide?

The c1 smart bed integrates with the Sleep Number app, offering personalized health and sleep insights using AI technology.