Microsoft had cancelled the distribution of the Kin Phone after 48 days that it was on the market. The company had discontinued the sales of the Kin Phone because of the low ROI. The number of sales of the Kin Phone falls below the expectation of Microsoft.
Microsoft had spent 2 years to develop the Kin Phones. The company had set aside a large budget for the Kin Phones. Because the phone couldn’t sell well, Microsoft had decided to never make it available to the market anymore.
The analyst from Forrester Research said that the phone is a complete disappointment in the market. Golvin said that he is very shocked to see that Microsoft had decided to cancel the Kin Phones because they had been making improvement to the new products.
The Kin phone is unable to compete with Apple products. The iPhone offers much more features and capabilities than the Kin Phones. For several years, Microsoft had been trying to compete with iPod but without any success.
The company is facing a lot of competitions from major companies such as Apple and Google. Microsoft also canceled a new tablet PC that is supposed to compete with iPad.
The team who are working on the Kin phone will be transferred to work on the new operating system for the smartphones, Windows Phone 7. Windows Phone 7 is going to be released in Fall.
Golvin said that the competition from the Android phone and Apple iPhone 4 challenged them to come up with new features. Due to these tough challenges, Microsoft has to put in more effort in order to produce consumer products with more features than Google and Apple. The Kin phone is available in two models including a higher end model and stripped down model. It is aimed at students and young people that spend a lot of time on Facebook and Twitter.
Microsoft and Verizon Wireless did not inform the public about the sales income from the Kin phones. However, the people that associated with Microsoft said that the sales figures are very low. The low sales had caused Verizon to cut the price of the higher end model phone to $50. Initially, the phone costs $200. The stripped down version of the Kin phone dropped from $150 to $30.
Microsoft said that they had cancelled the distribution of Kin phones in Europe. Meanwhile, the company and Verizon Wireless are attempting to push the existing inventories into a wider market. The A spokeswoman from Verizon, Brenda Raney told the reporter that although Microsoft had cancelled the Kin phone, it doesn’t mean that Microsoft will complete ignore about it. Kin phones continue to play a large role in the Microsoft inventory portfolio.