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 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.
"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
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
EU to Nokia: Don't Even Think About Becoming a Patent Troll
December 9, 2013, 10:29 AM
Apple's "iBeacon" Tracks Customers Inside Apple Stores for Enhanced Shopping Experience
December 6, 2013, 11:26 AM
Apple Says 74% of Its Mobile Devices Now Run iOS 7
December 6, 2013, 10:06 AM
Apple and Samsung See Virtual Tie in Q3 U.S. Sales, Nokia Seizes Fourth
December 5, 2013, 8:00 PM
AT&T Goes After T-Mobile with Reduced Off-Contract Prices, New Base Rates
December 5, 2013, 11:28 AM
MSI Unveils 3K Resolution GT60 Gaming, Workstation Notebooks
December 5, 2013, 11:00 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Latest Blog Posts
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
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information