Apple spends $2 billion a year on R&D to generate $130 billion revenue. Microsoft spends $9 billion a year on R&D to generate $70 billion revenue. Everything Apple tries in the last decade has turned into a monster hit(iPod, iPhone, iMacs, iPad). Microsoft has no NEW products in the last decade that are monster hits. Only the legacy monopolies(Windows, Office, Visual Studio) continue raking in the monster profits. Everything else(Bing, XBox, Zune, Windows Phone, Courier, etc..) gets funded from those legacy profits. Bottom line - Apple knows how to nip bad designs in the bud EARLY to prevent huge operating expenses. By the time they get to market with a product, it's guaranteed HUGE success. Microsoft just tries a bunch of bad ideas and hopes 1 sticks to the all(XBox 360 with XBL).