I was working in Microsoft about 5 years ago and Satya's not lying when they say they tried everything to incentivise app developers. It was a big focus of the company at the time. For keystone apps they tried to partner with developers doing most of the work for them. For more niche apps they ran promotions for students and independent developers giving away free phones etc. But nothing was enough to get over the pr…
It is my understanding that MS has given up on ARM. Sooner or later there will be x86 based phones, which partly solves the "app" problem. They just run a regular windows on the phone.
Sure, but right now Apple and their ARM designs are running away from everybody else. Plus Windows is terrible from a security and power consumption point of view. Can Microsoft fix that without breaking everything?
I think MS is conceding the entire phone space. Full screen form factors (like laptops is and large tablets) are very important but for small devices I don't think they can compete.