Microsoft management may have destroyed their partnerships, but they're certainly not imcompetent.
The Surface is the exact thing Microsoft needs to stay relevant for consumers. And if Microsoft can start selling their own hardware, in the end they'll be better and more profitable for it.
What does SemiArrucate thing Microsoft should do? Stay the same course that has seen them losing marketshare for a decade?
It's probably more accurate to say they've lost mindshare. The amount of PC marketshare they've lost to Apple is still pretty small.
But the biggest problem for Microsoft is that the market is shifting. Between smartphones and tablets, people just don't need PCs as much. So Microsoft is desperately trying to be a factor in those markets. Shrinking the PC down to the size of the Surface isn't a bad idea, but it will make OEMs very uncomfortable. They are feeling the same market pressure to get small and mobile.
So you're saying Microsoft could be more profitable than getting $80 billion a year from Windows licensing, by selling their own tablets? I highly doubt that. If Microsoft would be left alone to develop their own tablet, it's highly unlikely they will even get close to Apple's iPad sales.
The article isn't about HP bailing from Windows altogether, it's about HP bailing from Windows RT (i.e. ARM tablet) licenses.
So yes, in this case MSFT would be more profitable - do you think they can make more money creating a superior experience, without crapware, where they can absorb the entire margin of the device.
Or can they make more money shipping software to OEMs who have historically stuffed it full of crapware, failed to release timely updates, and only give MSFT a tiny cut of the proceeds?
The Surface is the exact thing Microsoft needs to stay relevant for consumers. And if Microsoft can start selling their own hardware, in the end they'll be better and more profitable for it.
What does SemiArrucate thing Microsoft should do? Stay the same course that has seen them losing marketshare for a decade?