Why Spotify's Car Thing was destined for the hardware graveyard

LOS ANGELES/STOCKHOLM - Spotify Technology SA's Car Thing player is now a thing of the past.

Spotify wrote down a $31 million investment in the device, which was aimed at increasing the number of users who listen to music or podcasts while in the car. However, the company said it was unable to sell enough devices at a sufficiently high price to justify the investment. After unveiling trials in May 2019, Spotify tested the device with a small group of people in April 2021, and then brought it to wider release in Feb this year.

Meta Platforms Inc's Facebook plans to stop producing a consumer version of a videoconferencing device dubbed Portal, instead focusing on the business market. It also disappointed people with its phone that came out in 2013 in partnership with HTC. It launched to mixed reviews, with critics raising privacy concerns.

While Spotify rules the music streaming niche, building a device for the car put it in a competitive arena with the likes of Apple CarPlay and Android Auto - both of which have the support of their own ecosystems of billions of devices.

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