Thursday, July 1, 2010

Another One Bites The Dust

From AdAge:

In what may be one of the fastest launch-to-failure paths ever taken by a major marketer, Microsoft's Kin, the company's first phone product, is being discontinued just six weeks after its May 13 launch.

The Kin One was priced at $49.99 while the Kin Two was a full $99.99 after their respective $100 rebates, coupled with a mandatory $30 monthly service fee that many consumers resisted. MarketWatch first reported that Microsoft only sold 500 phones during Kin's first six weeks, a figure that Microsoft representatives would not confirm or deny. Even a last-minute price slash on June 24, knocking $20 off the Kin One and $50 off Kin Two, appeared to be too little too late.

The Kin's failure echoes Microsoft's other expensive grab for Apple's share -- the Zune, which in 2006 tried to steal a hefty portion of the iPod's overwhelming command of the MP3 market. After nearly $30 million in measured media during its first nine months, the music player only mustered a 2.2% share of the MP3 market, according to NPD.

Microsoft's Windows mobile operating system has been steadily losing share and in first quarter powered only 6.8% of smartphones sold, according to Gartner, behind Symbian, Research in Motion, Apple and Android. That's down from 10.2% for the year-earlier quarter.

Microsoft's Windows 7 phone is expected to launch in the fourth quarter of this year.


Is it just me, or does the word "thud" seem to describe everything in the post-Bill Gates era at Microsoft?

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