A billion to launch Windows Phone 7?
Check out some of these figures in regards to how much Microsoft is probably spending on the launch of Windows Phone 7.
Microsoft easily spent over a billion dollars over three years to develop and launch the now-defunct Kin phones.
I’d say it’s safe to say we’re easily at or over $1 billion at this point. Microsoft made $62.5 billion in fiscal 2010. One of the company’s biggest black eyes at this point is its lack of a credible and coherent answer to the iPhone and Android. A billion dollars would be a small price to pay to achieve this.
This does take into account salaries and other things, but that is still money being spent on this project. And the part that kills me is this after they spend a billion on the Kin which was a complete flop. Sure, MS made $60 billion but a billion dollars is still a lot of money to throw at a failed project. Plus, this is a billion for this year, the phone isn’t even out yet. They have a TON of phones to sell to make up for that investment.
And the problem is, the iPhone 4 is out, a new Touch is coming out (for games and Wifi/Skype), multiple revs of the Droid are out. These people have made an investment in hardware and data plans. Microsoft is pretty bold in thinking that these people will just toss them aside and jump to their new phone.
And let’s not forget, Microsoft is spending a billion in the Xbox arena with Natal, and even more billions trying to catch up on search. I’m tellin’ ya, these billions are starting to add up. Are they making enough headway to justify this kind of spending?
Has yet another billion been spent on making a tablet? I wouldn’t be surprised when all is said and done.