Spotify stops Car Thing due to lack of demand and supply problems

Spotify has stopped producing its Car Thing accessory. The company reports this during the announcement of its quarterly figures. Car Thing was introduced last year and officially came out in February.

“Based on several factors, including demand for the product and supply chain issues, we have decided to stop further production of Car Thing,” said a Spotify spokesperson. to TechCrunch. “We have learned a lot from Car Thing and we will continue to focus on the car as an important place for audio.”

Spotify made a loss last quarter, partly due to higher personnel costs. The scrapping of Car Thing also entailed costs. As a result, the company takes a charge of 31 million euros on his balance. The gross margin also decreased last quarter due to the decision to stop Car Thing, says Spotify.

Spotify released Car Thing last year. In the beginning, the device, which was intended to control Spotify audio in the car, could only be ordered by invitation. In October, the company introduced a waiting list and in February the device officially came out, but only in the United States.

The latest Car Thing devices are currently still sold in the US, at a discounted price of $50. The normal suggested retail price was $90. It is not known how long the device will remain on sale. The company tells TechCrunch that Car Thing will continue to work properly, but it is not known how long the device will remain supported.

Spotify Car Thing