Microsoft confirms Kin at least a $240 million write-off

Microsoft logoMicrosoft while discussing its spring performance acknowledged that the failure of the Kin phones was one of its most expensive missteps to date. It explained that writing off the project cost $240 million even without the development costs. The ending costs led the Entertainment and Devices group to a $172 million loss despite the success of the Xbox and helped the 23 percent increase in Microsoft's cost of revenue.

Kin has already been considered one of Microsoft's greater blunders as it represented both the internal problems endemic to its current structure and its increasing difficulties translating its clout into successful products. The project was originally intended to use the direct results of the $500 million buyout of Sidekick creator Danger, but a decision to force the use of Windows CE delayed the Kin phones by as much as 18 months and not only left it without third-party apps or a calendar but killed an all-important Verizon rate deal that would have made it competitive. Due to the bandwidth needed by the Kin Studio backup and sharing service, Verizon later insisted the Kin would need at least a $70 smartphone plan, handing sales over to Android, BlackBerry and Palm devices with superior features.

Microsoft also orchestrated an elaborate launch that included a special press event and a broad marketing campaign across TV and other formats. The high profile did little to persuade buyers and saw just 9,705 sales in total. Verizon was disappointed enough with sales that it returned unsold stock after just two weeks rather than try to sell what was left.

Source: electronista

Tags: Microsoft, Microsoft Kin, mobile phones

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Consumer group recommends iPhone 8 over anniversary model
LTE connections wherever you go and instant waking should come to regular PCs, too
That fiction is slowly becoming a reality
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
Human moderators can help make YouTube a safer place for everyone
Google says Progressive Web Apps are the future of app-like webpages
All 2018 models to sport the 'notch'
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (4)