Spotify has decided to stop producing “Car Thing,” the streaming provider’s attempt to create a hardware audio player for cars.
The production stoppage was mentioned in Spotify’s Q2 earnings report. In a statement, the company signaled that low demand and supply chain problems caused Spotify to pull the plug on the product's manufacturing.
“The goal of Spotify’s Car Thing exploration was to better understand in-car listening, and bring audio to a wider range of users and vehicles. Based on several factors, including product demand and supply chain issues, we have decided to stop further production of Car Thing units,” a Spotify spokesperson said.
However, the Car Thing still remains on sale over Spotify’s website. Interested customers only need to pay $49.99 for the device, down from its original price of $89.99.
“Existing devices will perform as intended, and we will continue to support the available units for the foreseeable future,” Spotify’s spokesperson added. “This initiative has unlocked helpful learnings, and we remain focused on the car as an important place for audio."
Still, unlocking those “helpful learnings” came at a cost for Spotify. The company had to pay a €31 million charge to end production on Car Thing, which led Spotify to report a higher-than-expected gross margin in its earnings report.
The company is also exiting the Car Thing product a mere five months after the product launched widely in the US. The accessory product was designed to offer a streamlined, personalized in-car listening experience for Spotify Premium subscribers. The result was a phone-like device, which can be mounted inside a car, and featured a large dial to help you flip through songs
But according to our review, the device didn’t offer any major benefits over simply using the Spotify app on your smartphone. Other weaknesses were its laggy response to voice commands and a lack of any navigation functionality.