It's says Apple does substantially more with less.
Microsoft has outspent Apple roughly 8-1 in R&D over the last decade. Yes, 8 to 1.
And in that time - roughly 10 years - Apple has produced Mac OS X, Mac OS X Server, lots of groundbreaking Mac models (multiple iMac versions, the iBooks, MacBooks, MacBook Pros, MacBook Air, Power Macs, etc.), iPod, iPod Touch popularized Podcasting, iTunes, iTunes Store, iPhone, iOS, Apple TV, the App Store, Mac App Store, and, of course their current game-changer: the iPad (and now an even bigger hit, the iPad 2.)
Microsoft, on the other hand, for 8x the money, has come up with: another back-asswards Mac OS X clone - a Windows rehash that they're trying to shoehorn onto tablets with varying degrees of failure, some bloated Office retreads, the Zune, Kin, Bing, and Windows Phone 2007. If it wasn’t for the Sony-inspired Xbox (Red Ring of Death included) and a Nintendo-inspired Xbox controller, Microsoft would have nothing but a string of failures to show for roughly 80 billion dollars. The ratio of R&D to revenue for both companies couldn’t be more telling. Of course, they put a lot of R&D into their Enterprise software. Which doesn't function any better today than it has years ago. Lots of folks are still on XPee at work. It's hard to get excited about Exchange and Outlook, and hard to actually enjoy using them. Which no one really does.
That's right. $80 billion for a PlayStation clone, an accessory to make it work like a Wii, an also-ran search engine, and what's left of Nokia.
MS is still stuck doing the exact same things they were doing 10 years ago: Windows and Office.
That isn't innovation (not in a tech world that includes Apple, and now Google.) That's fear of change, and the bad decisions that it causes.