Microsoft has almost always failed in situations like that. Their development strategies revolve around each product concept generating it’s own profit, almost like autonomous businesses.
When apple decided to get into the phone market, they took what they already did well with the iPod and put into their phone, including the ability to play music like iPods did. If it were Microsoft, they’d have locked the music and iTunes out of their phone unless you paid more for it, because that profit belonged to the iPod division. Apple’s philosophy is to make you a customer first, and let the that drive the additional revenue streams after.
Microsoft was never going to have a great device OS because Microsoft was never ready to combine or bundle it with their market strengths, such is into the business real using office for example. Office is too precious. So fail.
Troof. It was also a different world from the one where Microsoft was king of the desktop and could kneecap their opponents. Nobody trusted Microsoft, because as king of the desktop, they used their position as the gatekeeper of programs to destroy anyone competing with them. They entered into the phone wars without being able to sneak up on anyone.