How Much Did Microsoft Lose On Kin?

It took a long time coming. And when it did come, it just went away in a jiffy. The Kin chapter is something that Microsoft would like to forget. After all the engineering, marketing and promotions, the company allegedly sold only 500 of their Kin devices. Some ¬†argue that the number is in the high […]

It took a long time coming. And when it did come, it just went away in a jiffy. The Kin chapter is something that Microsoft would like to forget. After all the engineering, marketing and promotions, the company allegedly sold only 500 of their Kin devices. Some ¬†argue that the number is in the high four digits. Nevertheless, it doesn’t matter – any product that is terminated two months after launch is deemed a failure.

But how much did Microsoft lose in the entire deal? According to the quarterly results announced yesterday, the company could have lost as much as $240 million in the development and marketing of Kin. This is what Redmond has to say in their quarterly reports

“Cost of revenue increased $584 million or 23%, primarily reflecting increased online costs, increased royalty costs and charges resulting from the discontinuation of the KIN phone.

Cost of revenue increased $240 million or 2%, primarily reflecting increased online costs and charges resulting from the discontinuation of the KIN phone, offset in part by decreased Xbox 360 console costs and reductions in other costs due to resource management efforts.”

Wow, a quarter of a billion written off due to Kin. That must hurt.

Google Online Phone Store For Nexus One Closes Down

So it’s officially over for Google’s Nexus One online store. At the start of 2010, Google announced an innovative new business strategy when it made its foray into the mobile phone business – a completely online retail model whereby users may purchase Nexus One only via Google’s online store located at Google.com/Phone. The flaw in […]

So it’s officially over for Google’s Nexus One online store. At the start of 2010, Google announced an innovative new business strategy when it made its foray into the mobile phone business – a completely online retail model whereby users may purchase Nexus One only via Google’s online store located at Google.com/Phone.

The flaw in the model quickly came out to the fore – customers were wary of purchasing a phone that they could not touch and feel before purchase. A lot of customers did not get to see a phone in action even from friends and family when they ordered unit. The lessening demand saw Google quickly make arrangements for the phone to be available via retail stores.

Now finally, Google appears to have resigned to the fact that an online model for smartphone may not work. The Google.com/phone website now shows a message that reads
Google Nexus One Phone Store

I’m not sure if this has something to play with Google’s stock market performance. The Google stock (NASDAQ:GOOG) is down 1.86 points (-0.39%) since the market opened this morning. This may as well be knee-jerk reactions and expect the market to stabilize soon.