What confuses me about this is that we always hear people debating if Apple is a hardware or software company. Microsoft is undoubtedly a software company, but acts as if it doesn't know how to create anything other than Windows.
The question I can't escape is this: Is Windows 7 going to offer the *ideal* tablet experience? The answer to that has to be a resounding "No." So, then, why is Microsoft - a software company - attempting to shoehorn software onto a platform it wasn't designed for, rather than develop a new solution?
APPLE hardware manufacturing is outsourced to Chinese companies (Quanta and AsusTec), with the exception of the new chip maker they acquired.
Ballmer is such a nerd. Microsoft has all the resources to be the best, which they are not. He will never be a JOBS, ever.