“Microsoft’s biggest miss”:http://minimalmac.com/post/17758177061/microsofts-biggest-miss is a nice discussion of another issue for the company, the slippage in relevance of Office.
I can’t speak to the whole market, but my document composition has moved almost entirely to vehicles like Evernote, Dropbox-hosted apps, Google Docs, and draft emails because the absolute #1 feature I need is document availability from everywhere — work machine, home machine, iPad, phone, kiosk, etc. No other document composition feature even comes close for me, I’m happy to use simple Markdown syntax for formatting. Office has started to embrace this issue but it is a little too late, I’ve kind of moved on.
The individual Office apps are still great apps. And it is still hard to not have Office on a machine with all the inbound Excel and PPT files, so I am still an Office buyer. But it feels like this kind of buying behaviour will collapse at some point — the viewers in Mac Mail for instance aren’t terrible.