Earlier quoted context omitted.
I partially agree, but with some caveats: 1. Future is also in the games, and here Microsoft has a very competitive product (xbox/kinect) 2. mobile race is not over yet, and WP7 is conceptually a good product, combining polished UI (aka iOS) with at least some hardware variety (aka Android). It just came late to the game, but it is not yet clear if too late. I personally think they can catch up with throwing enough m…
2. & 3.) It's very, very late to come to these races with nothing truly compelling to show. I think they've already lost, but, nothing's sure...
Apple likes to retreat into it's niche where it controls everything (helps avoid antitrust regulators breathing down its neck) and has high margins. This is already happening with the iPhone. Android while gaining in popularity, lacks the polish in the UI and performance.
Even with much better raw hardware, Android performs worse compared to Windows Phone 7. See http://pockethacks.com/windows-phone-7-smoother-than-dual-co...
The going empirical formula is version 3 of their products are when they start becoming good. While WP7 is technically version 7, it's actually a complete reboot of the platform with zero backward compatibility. They're taking the middle route between iPhone and Android, having variety in hardware but strict hardware requirements to prevent fragmentation and a controlled app ecosystem. That said, they don't have a good tablet strategy. Maybe Windows 8 will really be tablet optimized, or maybe tablet hardware will catch up to make it run smoothly(the Win UI is still a hard problem on tablets though). Or maybe they will port the Windows Phone UI to tablets.
In short, very interesting times are ahead in the mobile/tablet space and it would be a mistake to write Microsoft off.