Spotify is discontinuing Car Thing due to lack of demand and supply issues

Spotify has stopped production of 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 halt further production of Car Thing,” a Spotify spokesperson said. to TechCrunch. “We learned a lot from Car Thing and we 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 deletion of Car Thing also entailed costs. As a result, the company takes on a burden of 31 million euros on its balance. Gross margin also declined last quarter due to the decision to stop Car Thing, Spotify says.

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 being sold in the US, at a discounted price of $50. The normal MSRP 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