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Long-Term, Short-Term

You have probably heard of the Microsoft Kin (link), a telephone that was recently discontinued, six weeks after its initial release. The Internet is already gushing with articles about it, but let me summarize the story in a few points.

1. Danger Incorporated created the Danger Hiptop (link), a smartphone that gathered some success with teenagers thanks to its low price and strong social media features.
2. Exclusively sold by T-Mobile, the phone became popular under the name T-Mobile Sidekick.
3. The Hiptop / Sidekick runs DangerOS, a proprietary OS based on Java.
4. In 2008, Microsoft buys Danger Incorporated with big plans for the Kin, a successor to the Hiptop / Sidekick.
5. Microsoft scraps DangerOS, and has the Kin run Windows Phone 7 OS (link).
6. Microsoft makes a deal with Verizon for the distribution of the Kin.
7. Months later, due to Windows Phone 7 getting way behind schedule, the Kin is switched half-way into development to a customized version of Windows CE, the release date gets thrown into the future in a DeLorean.
8. The Kin is finally released, but it is too little, too late. Verizon lost confidence in a commercial success and does not support the product. The Kin gets no advertisement and a full price tag.
9. The Kin is not selling, Microsoft pulls the plug.

Pointing at the mistakes is not that hard, these two decisions are to blame:

• Moving from T-Mobile to Verizon, and loosing the brand and customer base.
• Moving from the proven technology of DangerOS to an unreleased Windows Phone 7 OS whose development was bound to drift at some point.

But are they really that bad? What was the rationale behind these two decisions?

First, Verizon has roughly three times the customer base of T-Mobile. If the Kin would have been successful, a few years down the road that would have made a huge difference.

Second, how hard is it to develop and maintain an OS? And what about two totally different OS then? Diluting the mobile phone OS effort of Microsoft would have been a massive burden in the long run.

So it made sense over the course of a few years, the problem is that the phone survived six weeks. Long-term decisions are good, but beware of their short-term implications, all might be gone before you get to see the result.

More info:

• ars technica (link)
• engadget (link)