Microsoft Likely Lost Over $60,000 Per Kin Phone as Verizon Pulls the Plug
July 19, 2010 1:07 PM
comment(s) - last by
The phone was rumored to have sold around 8,000 units
Microsoft's Kin smartphones made Palm's struggling Pre look like marketing genius. Released exclusively on Verizon
about 2 months back
, the pair of phones marked the culmination of Microsoft's reportedly $500M USD
purchase of Danger
(makers of the Sidekick).
The phones lacked features found in Android, the iPhone, or other modern smartphones and were marketed with a series of controversy-laden ads. In the end they reportedly sold around 8,000 units.
Following Microsoft's decision to
pull the plug
on future Kin-related endeavors, Verizon this week decided that it had seen enough. It is
of the phones, pulling them from store shelves, and shipping the remaining supply (which is mostly untouched) back to Microsoft.
While it's no real skin off Verizon's back considering the carrier's well-packed stable of smart phones and plethora of smart phones, the metrics of the screw-up for Microsoft are staggering.
If you assume to $500M USD Danger purchase cost and that 8,000 units were sold, that works out to a cost to Microsoft of $62,500 per phone. At that rate Microsoft might as well have been giving away small bars of gold with a phone built in. And that's not even including the two years of engineering that Microsoft financed to launch the phone and the extensive advertising campaign.
readies Windows Phone 7
, its surely a bit nervous as it watches Verizon nail Kin's coffin shut. Its room for error in the smartphone arena is
close to exhausted
This article is over a month old, voting and posting comments is disabled
7/20/2010 12:37:49 AM
Back in the 80s~92.
The Amiga computer was the most powerful PC you could get.
- Multi-tasking OS since 1985... it would take MS 10 years to come up with Windows95... and Apple 15 years for MacOS X.
- Costs less than a "PC CLone" and of course Macs ($5000+)
- Color graphics with 4096 colors (no add-on card required)
- Stereo Sound (no add-on card required)
- Fast. A 7mhz Amiga runs circles around a 25Mhz 386 with Win3.0
In the end, about 1 or 2 millions Amigas were sold world-wide.
They were very good computers than most people could afford compared to anything else. But obviously, they failed in the market due to the company, Commodore being completely stupid.
7/20/2010 10:48:44 AM
What people appear not to know about this story is that Microsoft bought Danger for its software, not just its programmers. They continued development for a while and at some point management decided that this being Microsoft every product must be based on Windows. So the dumped the investment they had just made, totally disheartening the Danger developers they had brought in house and set back the Kin project by 18 months.
The result is likely to be that many of those developers will leave Microsoft and the entire investment will have been lost.
I wonder what the figures are for the Xbox... without even adjusting for inflation that has lost over $10 billion. A more valid figure would be loses per customer since over 50% of the previous version of the Xbox failed.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
Windows Phone 7 Early Previews: A Pretty Frame, But Seriously Incomplete
July 19, 2010, 9:31 AM
Kin Phone Failure Weighing Heavily on Microsoft
July 8, 2010, 3:03 PM
Microsoft Kin One, Kin Two Now Available, Reviews Not that Great
May 5, 2010, 9:13 AM
Microsoft, Apple Lose Smartphone Market Share While Google Makes Big Gains
April 6, 2010, 9:00 AM
Microsoft Gets a New Sidekick
February 11, 2008, 1:03 PM
Man Who Shot Father for Texting During Movie Previews Was Also Texting
March 14, 2014, 2:25 PM
Sony's PS4 Outsells Microsoft's Xbox One for February
March 14, 2014, 12:36 PM
Skrillex Releases Free Album Inside App, But Crashes Torture Fans
March 13, 2014, 8:04 PM
Microsoft Waives Windows Phone OS Licensing Fees for Two Hardware Makers in India
March 13, 2014, 1:07 PM
Huawei Says Windows Phone is "Low Priority", Relegates It to Dual OS
March 13, 2014, 11:21 AM
$1,200 Nikon 1 V3 Mirrorless Camera Offers 120fps Slow Motion Capture
March 13, 2014, 9:04 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Tesla Motors Calls New Jersey Out on New Rule Against Its Direct Sales Model
March 11, 2014, 12:01 PM
NASA Considering SpaceX "Red Dragon" for Returning Mars Samples to Earth
March 10, 2014, 2:43 PM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information