05-12-2010, 10:12 PM
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Executive Editor
Join Date: Aug 2006
Posts: 29,160
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Microsoft and Verizon Defend Kin Plan Pricing
"Microsoft's new Kin phones are not truly smartphones, but Verizon Wireless is charging users a minimum monthly $70 service fee anyway -- $30 alone for data -- over a two-year contract. Microsoft and Verizon representatives defended the fee on Tuesday, partly because of the Kins' automatic cloud-based backup of video, pictures and other data." 
I've been critical of the reality distortion field that accompanies Steve Jobs every time he presents, so I can't be any less critical when I see Microsoft and Verizon doing the same thing. Both Microsoft and Verizon are standing arm in arm and together defending the pricing plan they've come up with for Kin. Ultimately, technology pundits such as myself saying the pricing plans are too expensive only count for so much - which isn't much - and what really mattes is what the market says. In a few months we'll be able to see how popular the Kin is - or isn't - and make some conclusions from that. I maintain that the sweet spot would have been somewhere in the $40 to $50 pricing plans for both voice and data, and even lower if it's part of a family plan, not the $70+ realm that Verizon has chosen. Price matters - it always has, and it always will. Time and time again, consumers will accept "good enough" technologies if they intersect with a price point that makes sense; netbooks are a good example of this principal in action. The technologies in Kin are interesting, but not unique, and only someone who doesn't know any better is going to pay $70 per month for a Kin voice and data plan. Microsoft blew a prime opportunity to capture an important slice of the market...
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05-12-2010, 10:58 PM
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Oracle
Join Date: May 2003
Posts: 984
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I was disappointed enough when Verizon Wireless made me pay $10 extra for the data plan that neither one of my kids use on their new phones, after they had chosen them. If they had said it was a mandatory $30 more per month on top of minutes and messaging, I'd have said no way.
Maybe I'm wrong, but I just don't think that these phones will do well at all. Maybe they'll do like the Pre and Pixi and start giving them away, including bundling the data, if nobody buys 'em.
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05-13-2010, 03:45 AM
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Mystic
Join Date: Aug 2006
Posts: 1,520
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I agree that the they should have priced these guys with a less expensive data plan. Of course the argument would be these these guys probably use a lot of data.
Perhaps a cheaper voice plan to offset the data price and emphasize the "upload" features.
__________________
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05-13-2010, 05:31 AM
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Contributing Editor Emeritus
Join Date: Sep 2006
Posts: 1,053
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Their defense is almost comical.
Almost.
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05-13-2010, 06:29 AM
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Thinker
Join Date: Aug 2006
Posts: 431
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Quote:
Originally Posted by Jason Dunn
The technologies in Kin are interesting, but not unique, and only someone who doesn't know any better is going to pay $70 per month for a Kin voice and data plan.
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Well, as someone who doesn't know any better, I have begun playing with my new Kin today. I would love to pay less for something, but I am not paying any more for the Kin on Verizon than I was on ATT. So, we'll see.
This is an experiment in more ways than one. First, with Verizon which I had as my carrier many years ago but dumped when no phone they offered could pick up a signal in the first floor of my house, only on the second. After many months of phone exchanges and resetting the phone did no good, I dumped them for ATT. So far, the Kin actually works throughout the house.
Second, I wanted to get an early test with Windows Phone 7. I don't get invited to tech expos to try out phones, so this was a way to give it a try. And before someone tells me the Kin isn't really a WP7 device, I say, yeah, sure. But it is as similar as anything you can get your hands on. I guess it is a proof of concept test for me to see if the basic layout of the UI is as good in practice as it appears in print and You Tube video demos. Early verdict: yes, it is.
Third, I confess to liking the whole social network thing. This from a guy who does not play multi-player games. I am definately not in the target market for the Kin, but I do enjoy exchanging stuff on Facebook and Twitter. I was able to do that on my HTC TD2, and on my Zune HD for that matter, but on the Kin it is even easier.
Who knows, I may be the only person who will buy a Kin. But the plan wasn't that big a deal (when coming from another carrier) and I have a one year contract. First impressions are good, but I've only just begun to check it out.
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05-13-2010, 01:13 PM
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Neophyte
Join Date: Oct 2009
Posts: 8
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FCC magnet
Since the FCC is getting embroiled in the whole pricing thing, this is just great! This is the sort of thing that they will love to pick apart. And the argument someone used that it is no more than their last carrier? - even better. Let's see what the FCC has to say about that kind of nonsense - they're all charging this much, so it must be fair? Get a grip. I do get that they have to pay for the networks they build, but everybody likes to talk about how great VZW's network is, and it is. But let's not forget that they've got other carriers roaming on their network too, and that revenue goes into their pockets as well. It will be interesting to see if the FCC gets involved in the pricing of those agreements as well.
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05-13-2010, 06:38 PM
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Executive Editor
Join Date: Aug 2006
Posts: 29,160
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Quote:
Originally Posted by randalllewis
Well, as someone who doesn't know any better, I have begun playing with my new Kin today. I would love to pay less for something, but I am not paying any more for the Kin on Verizon than I was on ATT. So, we'll see.
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Sorry Randall, I didn't mean to be offensive with my statement  - it just seemed like by pricing that data plan the same as every other smartphone out there, Microsoft put the Kin up against powerful smartphones running Windows Mobile, iPhone OS X, Android, WebOS, etc. And given the limitations that the Kin has - no apps, no calendar, etc. - it seems like they're setting it up for failure. If they had set up the Kin to compete with feature-phones, they'd have had a completely different launch experience in terms of the reaction they got.
I'm really interested in hearing more about your experiences though, so please share them. In fact, if you'd like to write up your experiences in an article, we can do a "Guest Blogger" type thing and we'll publish your thoughts. 
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05-14-2010, 02:49 AM
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Sage
Join Date: Jul 2003
Posts: 740
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I see things from a different perspective: why a company of the size and resources of MS had to swallow such a blatantly dumb data plan?
Simple: because the device has no appeal....
If it had other carriers would have been interested and MS would have been able to negotiate a better deal.
If I am wrong and MS fully embraced the plan...... the company is in big trouble because is managed by incompetents completely detached from the real World.
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05-14-2010, 02:51 AM
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Sage
Join Date: Jul 2003
Posts: 740
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Quote:
Originally Posted by David Tucker
Their defense is almost comical.
Almost.
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And the border between comical and pathetic is very thin........
I do not know if it was because getting older I am becoming more intollerant but lately I find the statements from these big companies PRs people more and more insulting; do they really think that customers are so dumb to bites all these bs?.... I do not get it.
Last edited by Fritzly; 05-14-2010 at 03:11 AM..
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