“Second, rising inflation and component costs, coupled with the expanded lead time needed to order parts, has significantly altered the risk reward of continuing to lean into further product development,” the executive added. “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,” Vogel said, speaking last week. “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”
Car Thing uses a Premium subscription and requires a phone with mobile data connection. Ask, tap, turn, or swipe to get to the songs, artists, playlists, and podcasts you want to hear. The move weighed on the group’s reported gross margin for the second quarter, the company said, after incurring a one-time charge of $31 million.ĭuring last week’s earnings call, Spotify Chief Financial Officer Paul Vogel said the company’s decision to discontinue Car Thing was due to a few factors including pricing, inflationary pressures and supply chain difficulties. Car Thing from Spotify is designed for your drive and fills your car with music, news, entertainment, talk, and more. The company disclosed its decision to discontinue Car Thing in its most recent ( Q2 2022) earnings report on July 27.
The discount could mean that the device wasn’t selling out as fast as the company had hoped. Spotify recently slashed the price of the product by 44% to $49.99, according to its dedicated microsite for the product. Car Thing was ideal for vehicles that don’t have Apple CarPlay or Android Auto installed, although it still required a connection to users’ Spotify app on their smartphones.
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