Are you arguing that MS lost the smart phone race because they were too expensive? I don't know anyone who didn't buy a Windows Phone because of cost.

They lost because finding good Windows Phone apps was difficult. This is why I stopped using a Windows Phone, and why everyone I know stopped using a Windows Phone.

I could pick up a performant Windows Phone for $40, and I wasn't happy with my Android until I spent $200+.

Not to mention one of the largest companies in the world right now makes most of it's money off of selling a mobile OS's.

I loved Windows Phone 8.1

Handset was cheap, performant, the OS was gorgeous and easy to use, typing was great.

It's weird though. The apps are totally what did it, but I've found that I really don't use many apps on phones. My phone is littered with the, but my usage statistics say that I'm a slack ass when it comes to them. Basically just language applications.

Indeed, Microsoft already had the monopoly on desktop PC's when Linux took off so they could continue to hold it.

Trying to compete in a new market against free was a much harder prospect (and they where not the only one, I had a Blackberry Playbook, it was for it's time an excellent device and the OS was intuitive and solid...it got murdered in the market).

In fact unless you invent the category (iphone) you would be hard pressed to own it via the OS anymore.

Ultimately, it's commodities all the way down anyway. The only real "moat" that Apple's OS, MS's Windows desktop, Google services, etc. have is first-mover advantage, and that's not going to last very long.