Re: MS need to shed Ballmer
Few people upgrade to the new version of Windows, they get it with new PCs. Sales may not be great in a recession, but there are still nonetheless sales in the millions.
For cheap phones, for current sales you probably mean S40 rather than Symbian (plus Samsung are rather big at the low end too).
I disagree most people buy phones entirely on applications, I'd say that's one of many many considerations (with Apple still the most supported for some reason, yet it has 16% share and falling, compared to Android's rising share now approaching 70%, so clearly this isn't a major consideration for most people). Also by that argument, Android and IPhone shouldn't have bothered, as at the start they had less software than existing platforms.
As for 7th or 8th, you'd have advised Apple not to enter the phones market? And how do you define a market? The market for Windows 8 PCs is pretty new.
It may be that everyone who wants to have a tablet already has one, but if that's true, Apple and Android tablet sales will drop off too. The failure of the Surface won't matter then to MS, because people will continue buying normal PCs, 90% of which will run Windows 8. However, it's sensible to enter into new markets, in case people do continue buying those types.
Also consider that this is not an oversized phone tablet which is all we've seen before, it (especially the Surface Pro) is a full blown Windows PC. We can debate whether people want such hybrids, but it's certainly not late to the market - we've yet to have such a thing at all (at least not in such a portable fashion - previous hybrids ended up being bulkier than normal laptops, rather than smaller).
And again you spout the Zune was a flop myth. It didn't become market leader, but that doesn't make it a flop. It's all spin - when Apple get 5% of a market, they're hailed as a runaway success; when MS get 10%, it's a "flop" just because it wasn't number one. (Also consider the massively successful X Box - despite, unlike Apple who get nothing but hype, people claiming that no one would ever want to buy an MS console.)