The Costs of Windows Phone 7
How much should Microsoft spend to launch Windows Phone 7? Some are saying 1 billion dollars, (techcrunch), while others are saying more (zdnet).
Kin is dead but its costs were real
The analysis says that Microsoft spent a billion over three years on the Kin phone format. $500 million to by Danger, the developer of the Sidekick program software. Plus there was three years worth of salaries for development of Kin in the Pink team, and costs for Project Muse which involved surveys and finally about 240 million to write off Kin, DOA.
Coming up Windows Phone 7
What about the costs for the WindowsPhone7 (WP7)? Well so far Microsoft has been working on the successor to Mobile 6.x; that involves salaries for about 2 plus years for software and hardware developers. That plus the collective hundreds of other software developers that Microsoft has working on program support for apps for the WP7. Think of it, there are developers that support Office/SharePoint/BPOS, cloud services and development tools. That includes individuals in the Xbox/Xbox Live unit; Windows Live unit; Office unit; the Azure team; the Zune audio/video services folks; and Developer Division.
The Important Stuff … Really
And now we get to the really important stuff … marketing. There have been camps and contests to make sure that the WP7 has the latest cutting edge technologies built in so that people, at least the developers, know it. The handset makers, the carriers have be reached and accommodated to guarantee first class products and services.
Crispin, Porter, Bogusky is the same marketing agency that Microsoft hired to do its Windows 7 campaign (Seinfeld, Laptop Hunters, Windows 7 was My Idea). Rumor has it that Microsoft spent an almost $300 million on its initial Windows 7 ad campaign. That it spent $500 million to launch Vista. It is hard to know how much Microsoft is actually paying Crispin for a TV, Web, and print campaign for WP7, but a figure of $400 million is not hard to believe.