That's not to say that there is no more hope for Microsoft, however.

"The recent Microsoft reorganization shows that the tech giant is clearly doubling down on its device and service business," said Harry Wang, director of research at Parks Associates. "Its moves signal that future competitive advantages in the consumer technology industry will come from a platform-centric approach that seamlessly integrates service, hardware and software to enable a good consumer experience.

"Microsoft is far behind Apple and Google in this race," he added, "and will burn a significant amount of cash in order to catch up."

From the article, "Microsoft Slips on Surface" by Peter Suciu.

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