Microsoft Tackles New Challenge With Kin Devices

Kin One and Kin Two social networking

However, Microsoft could find it challenging to get younger mobile users excited about Kin devices. Not only is this market segment hard to please, it's also one that changes its mind frequently.

Nontheless, Microsoft expects Kin devices to appeal to users between the ages of 15 and 25 who are always on the run and consider Facebook and Twitter updates integral to their daily routines. Content creation is another key selling point, and Kin devices come with high-powered digital and video cameras that store their content in the cloud.

Allen Nogee, an analyst with In-Stat in Scottsdale, Ariz., believes Microsoft's goal for Kin is to shift focus away from its struggles in the business market and toward the youth market, where it has yet to establish a reputation. However, Nogee says Microsoft doesn't usually fare well in this category.

"Certainly if the Kin phones can stand out in the crowd, they could gain some market share," said Nogee. "Customers that buy such phones can be very loyal, but it remains to be seen if [Kin] will be 'in.'"

Kin's focus on core social networking apps means they won't be able to run the third-party apps so valued on other smartphones. Another challenge is that Kin's niche, which lies between a feature phone and a smartphone, is a new category that's still being defined.

Andrew Brust, chief of new technology for twentysix New York, a Microsoft solution provider in New York City, says the pricing for Kin devices, which has yet to be revealed by Microsoft and Verizon, will "make or break" their fortunes in the marketplace.

"My take on [Kin] phones is that they are hitting a mid-market customer demographic that needs certain more features than those offered by a conventional cell phone, but doesn't need full smartphone functionality," Brust said.

Sharp, maker of the Kin devices, has a history of producing relatively cheap and functional electronics products, and that's a positive sign, according to Brust.

"I am hopeful that the value will be high. If that's the case then, yes, I think social media handsets are a viable product segment. But if they cost too much, then the distinctions with full-fledged smartphones will seem irrelevant," Brust said.