Also "record financial record" thing can be very misleading for a company. It's not a predictor of success for the next few years. Competitiveness in the current environment is.

RIM fell for the same fallacy for years. RIM actually had a "record quarter" in 2009, and they were still growing into 2010. The problem is they only tried to change when things started getting worse - around late 2010 or early 2011.

They really should've started changing course in 2007, or 2008 at most, after the iPhone came out. But they didn't. Because they also thought their financials are improving, "so they might be doing something right". But all they needed to do to see if they are or aren't doing something right is look if their phones are competitive with the iPhone (and later the Android phones). And they clearly weren't.

Microsoft's biggest problem, as with all companies getting disrupted, is that the new disruptive technology arrives at a significantly lower price. Sure you can buy Windows machines for $300-$400 bucks, but the are nowhere near as good as the Android/iOS ones in terms of performance and what you get for the money in terms of hardware. And the price point is only getting lower.