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Kennedy M proximity ** a next generation connection **

Proximity Research Report

** The Future of Microsoft Mobile ** // Will Kin save Windows Mobile? // By McGregor Kennedy

Spring 2010


 * Table of Contents **


 * Table of Contents **

**__ References __**
**__Executive Summary__** Microsoft’s mobile sales continue to decline as they find it difficult to meet the needs of Gen Y consumers. Many users were dissatisfied with Windows Mobile and found RIM’s Blackberry or Apple’s iPhone to be a better device. With Sales declining ( see Figure 1 & Figure 2), Microsoft has attempted to build their first exclusive device to connect with Gen Y consumers. Microsoft’s Kin 1 & 2 are set to release in May, with the devices stressing social networking by integrating a friendly interface where all social networking sites can be reached. The phone also includes Zune, Microsoft’s premiere music software. But once again, Microsoft has failed to create a desirable phone because of the lack of features these phones have to offer. There are no downloadable apps, no calendar, and a lack of other features like Instant Messaging. It is true that Gen Y wants access to social networking sites, but other features are needed in-order to make the 30 dollar data plan attractive. This report recommends that clients stay away from Microsoft’s mobile devices as they continue to decline in the mobile market.

Microsoft’s Enterprise Computing Market
Microsoft has been the leader in the computing market since the first PC was developed. Through the years, they have remained dominant in the industry through their ability to update and create new software; in particular their Microsoft windows operating system and their Microsoft Office suite. Now, Microsoft looks to establish their name in the mobile industry. In previous years, Microsoft developed their windows mobile operating system to be integrated into manufacturers Smartphone’s. Microsoft’s transition into mobile devices did not go as smoothly as intended. They received many complaints about constant freezing and glitches within the software. Since then there have been updates to the software but no drastic changes. Because of their problematic software, Sales began to decrease as new competitors arose with better operating systems such as Apple and Google. (Windows Mobile, 2010) Microsoft now has created their own mobile devices, The Kin 1 and 2. These are the first mobile devices that Microsoft has created exclusively, designing the actual device and the software. Although this phone does not fall under the category of a Smartphone, a 30 dollar data plan is still required for the phones operation. In order to assess Microsoft’s new device, let me first show you what Gen Y looks for in mobile devices. (Grandy, 2010)

What Gen-Y looks for in Mobile Devices
== I have gathered the results of various focus groups ran here at proximity. The purpose of the sessions were to view how Gen Y users chose their mobile devices. Here are some key influences on Gen Y while purchasing a mobile device ==

Cloud Computing
== Microsoft’s Kin 1 & 2 are referred to not as a Smartphone but a “cloud phone” allowing every action performed on the phone to be backed up in the Kin Studio (or “cloud”). This will give users access to everything on their phone through their PC. Photos messages and videos will be stored online in your own personal Kin Studio; Sound familiar? That’s because almost all Smartphone’s are able to be synced to a computer, through Bluetooth or USB, saving all pictures, messages and videos you’d like. == == All backing up of files takes place instantly, showing that the phone is constantly connected to the internet. With all the internet activity it takes to constantly back up files, Verizon is requiring a monthly data plan with the purchase of a Kin. This places the Kin 1 & 2 in the same monthly fees as Smartphone’s such as the Droid and Blackberry. All of these phones contain the capability to back up files but have already been established in the mobile industry, unlike Microsoft. (Hamblen, 2010) ==

** We want Apps! **
==** In most devices, the majority of data plans occur on Smartphone’s, giving the user access to downloadable content such as applications and games. The Kin gives users ZERO access to any downloadable content, making the phones pre-packaged applications (facebook, twitter, myspace, zune) the only means of social media. The phone does support email but only with a hotmail or msn account. Email can be accessed through the web browser but that is a timely operation that other competing Smartphone’s take care of through applications. **== ==** Microsoft Claims that in the future they will be updating the Kin’s operating system to allow applications to be downloaded. “Over the longer term, we’ll be merging (kin and Windows Phone 7) platforms having downloadable apps,” said Greg Sullivan, senior manager in Microsoft’s mobile communications unit. Windows Phone 7 series is the newest addition to Microsoft’s mobile phone line and is planned to release Holiday 2010. This means that users will have to wait until that time to be able to get updated software to download applications, a wait many will not want to participate in. ** (Harvey, 2010) ==

**__ Zune Media Player __**
== Zune was originally developed in 2006 to compete with Apple’s already successful iPod. They started out by producing portable media devices but found little success competing with Apple’s iPod. Zune has since expanded, now being available as a fully integrated media player for the pc, xbox, and mobile device. == To many, Zune has gone unnoticed as a company; mainly because all their services are available through other well known companies. These other companies are better known because they provide a better service then Zune such as iTunes and Rhapsody. In Microsoft’s Kin models, Zune gives the user a library to store video, music and pictures in. The main problem lies in the fact that this is the only application that can play music. This means that a user must buy and upload music whenever they want to hear something new. Because of the cost of music, many users prefer using internet radio instead of music libraries because of the variety it offers for no expense. Most major Smartphone’s offer the option to download Pandora internet radio, and it is a top ten free download in many app markets.

** Lack of Features ** Aside from the lack of an app market, the Kin 1 & 2 both boast their social networking capabilities, allowing users to access facebook, twitter, and myspace all from the home screen. Brenda Raney, a spokeswoman for Verizon, said that the Kin phones were "designed ... to be a full-service device [for] the person whose life is about networking." In reality the Kin fails to be a full-service device by not including instant messaging (IM) or a calendar. They leave their users with no way to organize meetings or appointments. The calendar feature has been seen in almost every Smartphone and numerous feature phones. The fact that Microsoft overlooked these feature shows their inability to truly know what Gen Y users want. The instant messenger feature is also a widely integrated feature to many feature and Smartphone’s, but is not included in the Kin Models. These phones are targeted for the younger portion of Gen Y who still use IM frequently. Users may be dissatisfied with this feature being absent from an allegedly “Social” phone. (Holwerda, 2010)

** Pricing **
==** After viewing Microsoft’s **** f **** laws in their new device, it is fair to say the only way this phone could have a chance is if it is priced **** low. **** Unfortunately this is not the case. With a two year activation, The Kin 1 will sell for 50 dollars after a 100 dollar mail in rebate and the Kin 2 will sell for 100 dollars after a 100 dollar mail in rebate. Both phones then require an additional **** 3 **** 0 dollar data plan. For this price, users can choose from an array of Smartphone’s, including phone from RIM, Apple, and Google, that show features much greater than the Kin models. ** (Ziegler, 2012) ==

** Recommendations **
== After analyzing Microsoft’s new devices, I advise you to stay away from Microsoft mobile in the future. Their absence of applications, overpriced device and plan, and lack of features in the Kin models shows their inability to create devices that appeal to Gen Y consumers. Microsoft’s failed attempt to break through to Gen Y should be taken as an indicator on their future in mobile devices. Alternatives such as RIM’s Blackberry or Apple’s iPhone are priced similar but give the user more features and are targeted correctly towards Gen Y. ==

= References = Bass, D. (2010, April 12). //Microsoft Unveils Kin Social-Networking Mobile Phones (Update3)//. Retrieved April 12, 2010, from Business Week: http://www.businessweek.com/news/2010-04-12/microsoft-unveils-kin-social-networking-mobile-phones-update3-.html Grandy, L. (2010, April 12). //VIDEOS: Robbie Bach and Microsoft Kin Mobile Phone Launch//. Retrieved April 2010, 2010, from Technorati: http://technorati.com/videos/article/videos-robbie-bach-and-microsoft-kin/ Hamblen, M. (2010, May 12). //Microsoft, Verizon defends Kins monthly pricing, noting cloud backup//. Retrieved May 14, 2010, from Computer World: http://www.computerworld.com/s/article/9176587/Microsoft_Verizon_defend_Kin_s_monthly_pricing_noting_cloud_backup?taxonomyId=75&pageNumber=1 Harvey, M. (2010, April 12). //Microsoft unveils KIN phones to target social networking generation//. Retrieved April 12, 2010, from Times Online: http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article7095759.ece Holwerda, T. (2010, April 12). //Microsoft Unveils Kin Mobile Phone//. Retrieved April 12, 2010, from OS News: http://www.osnews.com/story/23146/Microsoft_Unveils_Kin_Mobile_Phones Takahashi, D. (2010, May 4). //Microsoft bets that teens will share their lives via its Kin cell phones//. Retrieved May 14, 2010, from VentureBeat: http://mobile.venturebeat.com/2010/05/04/microsoft-bets-that-teens-will-share-their-lives-via-its-kin-cell-phones/ //Windows Mobile//. (2010, May 12). Retrieved May 15, 2010, from Wikipedia: http://en.wikipedia.org/wiki/Windows_Mobile Ziegler, C. (2012, April 12). //Microsoft Kin One and Kin Two announced: Windows Phone roots with a social slant (updated with video)//. Retrieved April 12, 2010, from Engadget: http://www.engadget.com/2010/04/12/microsoft-kin-one-and-kin-two-announced-windows-phone-roots-wit/