August 7, 2022
Spotify halts production of Car Thing due to low demand

Spotify Halts Production of Car Thing Due to Low Demand

After a brief period, Spotify’s dashboard hardware accessory dubbed the “Car Thing” is no more. The music streaming platform, which currently has 433 million active users, had decided to unmount the production of hardware products after it received earning data. A spokesperson mentioned ‘several factors behind the demise of the tech, which include but are not limited to lower consumer demand and supply chain snarls.

Spotify halts production of “Car Thing” after the earnings report

According to the news, Spotify decided to stop the production of its Car Thing and pull out from the hardware sector after the earnings reports were published. It signaled that the decision was made because of low consumer demand and supply chain problems plaguing every hardware maker and not just Spotify.

All the existing Car thing units will be operational and won’t be discontinued. Additionally, you can buy a Car Thing for your car at $49.99 as opposed to the original pricing of $89.99 from Spotify’s website.

Spotify started selling Car Thing units as an invitation-only program. It was only made public a few months earlier this year that people could get their hands on Spotify’s car dashboard hardware. It is an ideal counterpart for cars without streaming functionality, meaning any car with Android Auto and Apple CarPlay , among others, wouldn’t get it. However, there are still a lot of older cars on the road that could enjoy Spotify using the Car Thing. However, the lower demand has put Spotify’s plan to market the hardware product on the sidelines.

The Swedish music streaming platform did mention although the Car Thing didn’t make much impact, it did help the company with learnings that it would use with future projects. For now, Spotify must pay EUR31 million as a charge to end the accessory production.

Spotify is currently ruling the streaming business with 433 million free, and 188 million paid users worldwide. It is at the forefront with podcasts and audiobooks as well. Discontinuing a hardware product would help the music streaming platform focus on its core products and their success in the long run.

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