Spotify made an aggressive attempt, but it was unsuccessful. The company’s effort into the hardware market, the Spotify Car Thing, has been scrapped. This is disappointing because it took a long time to release.
The release of the Car Thing was the subject of considerable hype. As the device’s delivery date approached in 2021, news and rumors about it became increasingly heated. It’s a gadget that allows you to remotely manage the Spotify app on your phone while driving.
It’s a wonderfully clever gadget that allows you to adjust your music while driving without having to look away from the road. It was a good device for folks who love to listen to music or podcasts while driving, despite a few downsides.
Advertisement However, the “Spotify Car” initiative was abandoned. Sadly, the product simply didn’t connect with users the way the company had hoped. The Car Thing will no longer be produced, according to Spotify’s Q2 2022 earnings release (via Engadget ). Our choice to stop producing Car Thing had a negative impact on reported gross margin.
The decision to stop selling the Car Thing, according to the study, actually had a negative impact on the company’s gross margin. The margin, which was 24.6 percent, was 386 bps lower than in Q2 2021.
Why, then, did the corporation discontinue producing the gadget? The Car Thing, however, simply wasn’t something that people wanted to own. The device had to be discontinued by the company because sales weren’t good.
Advertisement It belonged to the first generation. As a result, it wasn’t ideal. A few elements that would have increased the device’s appeal were missing. The cost just made matters worse. Although it wasn’t a poor device, you would pay about $100 for it. It seems like a much more cost-effective approach to purchase a phone clip and use Car Mode with your phone.
WHAT ABOUT THE DEVICES THAT ARE AVAILABLE, THEN? As you might expect, if you want one for yourself, you’ll have to fish from a dried-up pond. Before they are all gone, you need move quickly to secure one for yourself. If cost is an issue, you’ll be relieved to learn that it’s now only $50. Do not assume that Spotify will discontinue support for the gadget because it will continue to function as planned.
We’re not sure if the business will pursue further hardware endeavors in the future.