Yahoo Finance Spotify Discontinues Car Thing Device, Shifts Focus to New User Features
Spotify Technology SA (NYSE:SPOT) discontinued its debut hardware product, which enabled users to control Spotify through car speakers using voice recognition and preset buttons when connected to a phone. The stock is trading higher on Friday.
Spotify ceased production less than a year after its release, and now, two years later, the device will become inoperable on December 9.
Spotify does not offer refunds or subscription credits. Instead, the company advises users to dispose of the Car Thing responsibly.
Spotify stated that discontinuing Car Thing is part of streamlining its product offerings to focus on new features and enhancements for a better overall user experience. They confirmed there are no plans for a replacement, the Verge reports.
Initially launched on an invite-only basis in April 2021 and later made publicly available, the $90 device was discontinued five months after going on general sale.
Spotify launched Car Thing to the public in February 2022, targeting users without built-in infotainment systems in their vehicles, TechCrunch reports.
Despite low product demand and supply chain issues leading to its discontinuation, Car Thing found a niche community.
In April, Spotify reported fiscal first-quarter 2024 revenue of $3.95 billion, up 20% year-on-year, beating the analyst consensus estimate of $3.85 billion. EPS of $1.05 beat the analyst consensus estimate of $0.70.
Analysts flagged accelerated revenue growth in 2024, backed by Premium Subscribers, as it benefits from the shift to access-based streaming models.
They hailed Spotify's ability to ramp up revenue growth and improve profitability via pricing power.
Spotify stock gained over 107% in the last 12 months. Investors can gain exposure to the stock via ProShares On-Demand ETF (NYSE:OND) and WBI BullBear Quality 3000 ETF (NYSE:WBIL).
SPOT price action: Spotify shares traded higher by 2.38% at $307.66 at the last check Friday.
Image courtesy of Spotify
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