JAKARTA - Spotify appears to be discontinuing production of Car Thing, Spotify's hardware designed for vehicles so drivers can listen to music.
The news appeared in the company's quarterly earnings report, where the decision cost the company USD 31.4 million (IDR 469 billion). "Reported Gross Margin was negatively impacted by our decision to stop manufacturing Car Thing," Spotify said in a release.
At first, the purpose of Car Thing Spotify was to accompany users while driving while at the same time bringing more users to listen to music anywhere.
“Based on several factors, including product demand and supply chain issues, we have decided to discontinue further production of the Car Thing unit,” the company told TechCrunch.
However, the company insists that it will remain focused that the car is an important place to listen to audio.
The good news is that Spotify's big strides to expand its streaming services like Podcasts and Spotify Live seem to be paying off sweetly.
Spotify said its monthly active users grew by 19 percent, or 19 million, to 433 million, which is 5 million higher than its initial project itself.
The company had originally projected that their exit from Russia and the subsequent service outage would generate 14 million new users this quarter, but the results appear to be beyond the company's expectations.
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