John Gruber wrote about Microsoft’s past and future.

What they missed was the next step from every desk and home: a computer in every pocket. It’s worse than that, though. They saw it coming, and they tried. Pocket PC, Windows CE, Windows Mobile — swings and misses at the next big thing. They weren’t even close, and damningly, Steve Ballmer didn’t even seem to realize it. That’s what’s so damning about that video of him laughing at the original iPhone.

Steve Ballmer laughed. Bill Gates didn’t.

Microsoft’s institutional lack of taste had finally come to bite them in their ass. While Ballmer laughed at the iPhone and presumably walked around with a Windows Mobile piece of junk in his pocket, Larry Page and Sergei Brin carried iPhones. Google never laughed at the iPhone; it made money from it by providing web search and maps. Google quickly became, and remains to this day, a leading developer of iOS apps. And it was Google that was fast to follow the iPhone with Android, slurping up the commodity-market crumbs that Apple, focused as ever on the quality-minded high end of the market, eschewed. I don’t think it was ever within Microsoft’s DNA to produce the iPhone, but what Android became — the successful fast follower — could have been theirs if they’d recognized the opportunity faster. The Microsoft of 1984, a decade away from industry dominance, wrote software for the original Mac, and learned from it. When Bill Gates first saw a Mac, he didn’t laugh — he wanted to know how it worked, right down to specific details, like the smooth animation of its mouse cursor.