@ Sean Timarco Baggaley
Pretty graphs showing Nokia doing well when Elop took over in late 2010. The first iPhone was released in mid 2007, so that was not the event that caused the nose dive. The key event was the 'Burning platforms' memo, after the Q4 2010 results were announced:
Nokia revenues, Smartphone sales, Nokia smartphone sales, Nokia profits. (for some reason these links require the re-load button to become visible).
Nokia went from 34% market share to 3.5% because Elop selected Windows Phone (Nokia could not manufacture Lumia in their own factories) over N9 (excellent reviews, but Elop restricted sales to small markets so it would not outsell Lumia). Nokia stayed in business because of Microsoft handouts, Symbian sales and selling the head office (counted as a smartphone sale to make that division look less bad).
Microsoft has strong legacy software revenues that even Vista and Window 8 cannot destroy (but Surface losses did wipe out the profit). There is only one way that can go - shrinking market and increasing prices. At some point, the market will shrink faster than the prices can rise and Microsoft will have to have something else in place ready to provide revenues.
Personal computers are now hand-held battery operated devices with the market controlled by the network operators. Those operators will not tolerate Microsoft in their cartel, so Windows Phone will never get anywhere. Microsoft has announced this clearly by saying their Androidish products (Android OS, without Google's app store) are here to stay.
Linux on Azure and Office for iPhone are all clear signs that Microsoft knows it is on a burning platform. There will be more generations of the Surface and Danger/Kin will get repeated because Microsoft need a future and they have the revenue to try again and again. The silly thing is that Microsoft do have a solid new revenue stream with an unlimited future - patent trolling Android phone manufacturers.