The Spotify exec said the longer lead time to acquire parts to produce the device “has significantly altered the risk-reward of continuing to lean into further product development.” Spotify said ending the Car Thing production has cost them a one-time charge of $31 million. It also appeared that supply chain issues played a role in the cancellation of the device. Vogel also mentioned “rising inflation and component costs” as some of the factors that contributed to the Car Thing’s fate. “First, we tested a number of price points and we frankly haven’t seen the volume at the higher prices that would make the current product financially viable,” the exec said (transcription via Seeking Alpha). During the company’s Q2 2022 earnings call on Wednesday, Spotify chief financial officer Paul Vogel identified two main reasons for discontinuing the device. This week, however, Spotify confirmed that it would no longer keep making Car Thing.
The update has also let drivers see who is calling them through the Car Thing’s display. Just last April, Spotify rolled out some new features for the Car Thing that allowed users to answer or reject calls through the device. The company also introduced its version of digital assistant with the prompt, “Hey Spotify.” At $89.99, the device was advertised as an in-vehicle control with seamless support for the streaming platform. But the device is still available with a major discount.Ĭustomers in the United States were able to purchase the Spotify Car Thing just last February. Spotify’s venture into the hardware business ended abruptly as the company confirmed the end of the Car Thing production just a few months after it became widely available.
0 kommentar(er)
