As an illustration, here is Nadella's response to a question from Joshua Topolsky regarding Microsoft's strategy to sell more devices to consumers.
“You're defining the market as "It's already done, Apple and Google have won, because they won the consumer side.” And I'm going to question that. I'm going to say “No, any thinking consumer should consider Microsoft because guess what, you're not just a consumer. You're also going to go to work, you're also going to be productive and we can do a better job for you in there.” And that's what I want to appeal to.“
And therein lies the problem.
Nadella does seem a bit tone deaf here, but in some respects it's the answer he has to give. Looking back at where Redmond went wrong, it's hard to see how it wasn't inevitable that they'd miss the boat with mobile. If you're the company behind the desktop OS used on 95% of the world's computers that aren't physically made by you, transitioning to a mindset that says mobile matters is like turning a cruise ship around whereas for Apple, they only had raise the sail on the ship already headed in the right direction (ipod + itunes).