Spotify is no longer releasing Car Thing. A $90 device that plugs into a car’s auxiliary power outlet, docks into the dash, and lets you listen to Spotify was doomed by a combination of limited demand and resource issues.
As reported by TechCrunch, Spotify revealed in its Q2 2022 earnings report (PDF) today that it has ceased manufacturing hardware. Spotify released the device to a limited number of subscribers in October and to the general public in late February.
“Based on several factors, including product demand and supply chain issues, we have decided to discontinue further production of Car Thing devices,” a Spotify spokesperson told TechCrunch.
A Spotify spokesperson also told the publication that Spotify will support already-purchased Car Things that “will work as intended.”
You can still buy Car Thing as of press time, reduced to $50 as Spotify clears remaining stock.
Spotify’s first hardware find includes a 4-inch touchscreen, Apple CarPlay and Android Auto support, and voice control via noise-cancelling microphones. In addition to paying for the device, you’ll also need a Spotify Premium subscription to use it (starting at $10 per month per person), as well as a Bluetooth-paired phone using data or Wi-Fi.
While Car Thing didn’t last very long, its demise isn’t entirely surprising. The Car Thing had a large, accessible screen and a comfortable grip, but it didn’t add as much value compared to a docked smartphone.
The discontinuation of Car Thing “had a negative impact”on Spotify’s reported gross, which fell 24.6% when the €31 million (about $31.4 million) value of Car Thing is included, Spotify’s earnings report said.
However, Spotify claims that its early hardware efforts were not fruitless. A Spotify spokesperson told TechCrunch that the company used Car Thing to find out how people listen to audio in cars, and audio in cars will continue to be the company’s focus. Spotify hasn’t been more specific, and it’s unclear if the company will release other hardware.
Spotify’s dramatic hardware turnaround has been the heart of its business, software and content that continue to perform well. Monthly active user growth beat expectations by 5 million in the second quarter, up 19 million (19 percent) to 433 million.