


However, Car Thing lacked the features of the other infotainment devices, from navigation to making calls, making it harder to justify the need for a device just for music. Spotify said its device was not designed to challenge these entertainment systems, but rather to provide an easier way for its users - especially those with older model cars - to listen to music or podcasts. 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. "When they created the iPod, they had people in the ecosystem," said Gillett, adding that launching a device without such an infrastructure "is extremely challenging." IDC research vice president Frank Gillett said he could not recall any content company making a successful transition to hardware.īy contrast, a hardware maker like Apple Inc (AAPL.O) was able to launch music and video services by building on its operating system and existing device relationship with consumers. It launched to mixed reviews, with critics raising privacy concerns. It also disappointed people with its phone that came out in 2013 in partnership with HTC.

Meta Platforms Inc's (META.O) Facebook plans to stop producing a consumer version of a videoconferencing device dubbed Portal, instead focusing on the business market. It announced a new type of Spectacles last year, featuring augmented reality. Snap Inc (SNAP.N) shelved its original Spectacles, $130 sunglasses that transmitted video directly to the SnapChat app, back in 2017. Spotify was not the first software company to seek to extend its relationship with users into the physical world through devices.Īlphabet Inc's (GOOGL.O) Google was one of the early software companies to venture into hardware experiments with some major failures, including Google Glass - a wearable Android device resembling eyeglasses, which displayed information in the user's field of vision.
