Spotify Discontinues Car Thing, Disables Devices Amid Low Demand and Supply Chain Issues

Jordan Vega

Jordan Vega

December 09, 2024 · 3 min read
Spotify Discontinues Car Thing, Disables Devices Amid Low Demand and Supply Chain Issues

Spotify has officially pulled the plug on its in-car streaming device, Car Thing, with all units now disabled, the company confirmed to TechCrunch. The move comes less than a year after the device's launch in February 2022, which aimed to improve music control in cars lacking built-in infotainment systems.

The discontinuation was first noticed by an X user who reported that their Car Thing was no longer functioning, displaying a message that it's "no longer operational," along with a reminder of the refund terms valid until January 14, 2025. This confirmation from Spotify marks the end of a short-lived experiment that failed to gain traction in the market.

The decision to discontinue Car Thing can be attributed to a combination of low demand and supply chain issues. Despite its innovative concept, the device struggled to find its footing in the market, leading Spotify to reevaluate its priorities. The company's focus on other areas of its business, such as its core music streaming service, likely contributed to the decision to cut losses and move on.

The shutdown of Car Thing has left users who purchased the $90 device feeling frustrated and seeking refunds. Spotify faced significant backlash when it announced the shutdown, with customers demanding compensation for the discontinued product. In response, the company has provided a limited window for users to contact customer service and provide proof of purchase to receive a refund.

Users who still possess the device are advised to reset the factory settings and dispose of it according to their local electronic waste guidelines. This move is seen as a responsible step by Spotify to minimize the environmental impact of the device's discontinuation.

The failure of Car Thing serves as a reminder of the challenges faced by companies when venturing into new product categories. Despite its popularity as a music streaming service, Spotify's foray into hardware was ultimately unsuccessful. The company's decision to discontinue Car Thing will likely be seen as a cautionary tale for other tech companies considering similar expansions.

In the broader context, the shutdown of Car Thing highlights the importance of understanding market demand and supply chain dynamics. As the tech industry continues to evolve, companies must be prepared to adapt and pivot in response to changing market conditions. Spotify's decision to discontinue Car Thing serves as a reminder of the need for agility and responsiveness in the face of uncertainty.

As the dust settles on Car Thing's discontinuation, Spotify will likely refocus its efforts on its core music streaming service. With the refund process underway, users can expect a smooth transition and continued access to their favorite music and podcasts. Meanwhile, the tech industry will be watching closely to see how Spotify's experience informs its future product development and expansion strategies.

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