Once again, Microsoft has a product that failed miserably. The Microsoft phone "KIN" has already been pulled from the US market, and will not be making its European launch as had been planned. The reality here is that Microsoft's only money maker is Office. Windows sells well only because of its being pre-installed on most PCs. Linux would likely do just as well were MS Office available for it. Likewise, if people did some research and found out that iWork and MS Office were available on Macintosh machines, I am willing to bet that Mac sales would escalate even higher. This isn't the first Microsoft product to fall flat on its face (the KIN sold, by some reports, only 500 devices).
KIN, Vista, ME, Bob, Zune, CE (never garnered more than 5% of the market), XP Tablet Edition
What's odd here is that Microsoft has completely failed on selling Windows anywhere but netbooks, laptops, desktops, and servers. The mobile market has long belonged to Google, RIM, Apple, and Palm/HP. Music players... well that's Creative, Sony, and Apple (largely just Apple). Tablets were a failure for everyone really, except Apple.
Outside of Windows 3.x, Windows 95/98, Windows XP, and Windows 7, Microsoft has had a hard time selling OSs. Outside of Office, Microsoft has a hard time selling software. Outside of XBOX and XBOX 360, Microsoft has a hard time selling computerized devices. I guess that Microsoft's best selling stuff is really just keyboards, mice, and Office. Funny isn't it?
So what does this show us? Microsoft is really only where it is due to chance and consumer ignorance (not stupidity, just ignorance... and apathy). It also means that through tablets, mobile devices, and possibly netbooks, Linux can reign supreme. Possibly. A lot would have to happen for Linux to gain. Either Google's brand recognition, or another company's would have to gain to a point that it could really compete with Microsoft and Apple. This means advertising, product placement, and high initial sales.