Panic in iOS Land

Isn't that the crux of the problem, though? As software has become commoditized it's very difficult to make money by creating software. Now it's all about service - and even then it's difficult to get people to pay to use a software-only service; especially when there are (usually) free alternatives.

I don't envy the position Microsoft is in. They need to pivot and it's not at all clear where they can pivot to and still maintain their substantial income stream.