Spotify's abrupt hardware U-turn comes as the heart of its business, software and content, continues to perform well. Monthly active user growth surpassed expectations by 5 million in Q2, growing by 19 million (19 percent) to 433 million. Spotify didn't get more specific, and it's unclear if the company will make another hardware play. Spotify's rep told TechCrunch that the company used Car Thing to learn about how people listen to audio in cars, and audio in cars will continue to be a focus for the company. Spotify claims its first hardware efforts weren't fruitless, however.

Halting Car Thing manufacturing 'negatively impacted' Spotify's reported gross margins, which fell 24.6 percent when including the Car Thing charge of 31 million euros (about $31.4 million), Spotify's earnings report said. Car Thing had a large, accessible screen and handy knob, but it didn't add that much value over a docked smartphone. While Car Thing was extremely short-lived, its demise isn't completely surprising. In addition to paying for the device, you also need a Spotify Premium subscription to use it (starting at $10 per month for one person), as well as a Bluetooth-paired phone using data or Wi-Fi. Spotifys Car Thing is a smart touchscreen with voice control that lets you listen to music and podcasts in the car. Spotify's first hardware foray features a 4-inch touchscreen, Apple CarPlay and Android Auto support, and voice control via noise-canceling microphones.

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