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I think the thing that has messed Microsoft up for the past few years is Jealousy. Microsoft has been in the lower market sphere while Apple has always been in the highend market. What simply happenened is expected. The winner at the end of the day is the one who successfully markets to the mass markets.
Surface was tailored towards Apple's original market while I-touch family was tailored towards Microsoft's original market and that has made all the difference.