Microsoft Unveils its “Social Phones”

After weeks of speculation, Microsoft (MSFT) finally unveiled its new line of smartphones dubbed “KIN.” The launch took place at an April 12 media event in San Francisco. The company hopes the launch will revive its flagging mobile-business.

The new smartphones will run on Microsoft software manufactured by Sharp Corp. The KIN devices are the first Windows-branded phones in the history of Microsoft and represent a significant shift in its longstanding mobile-strategy. The new devices were developed under the project codename “Pink” but will be known as KIN One and KIN Two. They are being positioned as “social phones” and will be available exclusively through Verizon Wireless in the United States in May. Vodafone in Germany, Italy, Spain, and the United Kingdom will follow later this year.

Robbie Bach, president of Microsoft’s entertainment-and-devices division, released a statement, saying: “We built KIN for people who live to be connected, share, express and relate to their friends and family. This social generation wants and needs more from their phone. KIN is the one place to get the stuff you care about to the people you care about most.”

By playing a greater role in the hardware design of the mobile devices running its software, Microsoft is hoping to counter the growing influence of Apple’s iPhone, Reseach In Motion’s BlackBerry, and Google’s Android platform. From November 2009 to February 2010, the number of smartphones running Microsoft’s operating system fell from 19.1% to 15.1% in the U.S. market, according to data released last week by tracking firm comScore, Inc. Microsoft began revealing plans for its mobile turnaround in February at the CTIA wireless trade show in Barcelona, where the company showed off the latest version of its mobile software, Windows Phone 7, set to be released this year.

Windows Phone 7 will replace the company’s legacy Windows Mobile operating system and will feature integration with Microsoft’s other consumer products including its Bing search engine, Zune media marketplace, and Xbox Live video-game network. Microsoft plans to use the KIN devices as a way to introduce its social services (e.g., Zune Marketplace, Bing and Live) to younger audiences. The strategy is aimed at transitioning those users to devices running Windows Phone 7 as they get older.

Both KIN devices will feature touch screens with slide out keyboards. KIN One is designed to be the smaller of the two devices, whereas KIN Two features a larger keyboard, more memory, and a higher-resolution camera (8 MP compared to 5 MP in the KIN One) as well as the ability to record high-definition video.

The home screens of the new devices will be known as the KIN Loop, which will draw in feeds from the user’s social-networking accounts including Facebook, Twitter, and MySpace. Users will also be able to prioritize the messages coming from certain friends.

Another new service, known as Spot, enables users to “focus first on the people and stuff they want to share rather than the specific application they want to use.” Once a user decides what to share and the friends with whom they want to share, they can select which services (Facebook, Twitter, etc.) they want to use. Microsoft is also including a version of its MyPhone backup-service with the KIN, calling it KIN Studio. KIN users will now be able to automatically back-up all texts, photos, videos, contacts, and call history with an online account that can be accessed through a PC.

The KIN devices will also include Zune’s multimedia software, which will allow users to download music, movies, and podcasts as well as listen to FM radio. The feature is similar to the online accounts associated with the T-Mobile’s Sidekick device, which ran on technology produced by Danger Inc., a company Microsoft purchased in February 2008. Sharp also manufactured the Sidekick.