Where is Microsoft going wrong?

Okay before I start... I am a huge Microsoft fan however, still not able to decide which Microsoft product (consumer products) I should buy/own instead of Apple or Google. Still products I own are from Apple or Google.

I own:

Laptop: rMBP (late 2013) my work machine as we are allowed to BYOD. I have tried Dell (2008-2010) and Sony Vaio (2011-2013) earlier and both were high end of their time but I was never happy or say satisfied as I am right now.

Phone: HTC One (M7) tried HTC HD2, Lumia 800, Lumia 920, Lumia 925 but I was never happy as I am right now.

Tablet: iPad Air (Wife owns it) I tried Surface RT (First Gen) sold it back in one month. Currently waiting and eyeing for something good and the way MS is going it looks like I have to go for iPad Air next generation.

Desktop: iMac (2013). I didn't have desktop from 2006 after finishing college. Lately I needed one as my laptop was always in office bag and I don't want to use it for browsing, social networking, Skype and other personal stuff. I decided to go for ALL IN ONE to have cleaner, hassle and wire free desk. Again nothing came closer to iMac even with price comparison.

Let me explain why I listed my products:

******* Windows 8.1 & Laptop***********

I have Windows 8.1 installed in rMBP as VM (via parallel) and believe me it works much faster than OSX mavericks which runs natively on rMBP. This amuses me as how good is Windows 8 but it is still criticised and OSX is getting all the praise. OSX Mail, Safari crashes so often on their highly specced machine that now I don't mind it at all. However, running Windows 8.1 on VM, I started using OSX more often than windows. I bought rMBP as there was no machine in the market which is better in quality, looks or specification (16 GB RAM) in that price range thus, ended up buying rMBP to run Windows 8.1 ironically.

************ Windows Phone 7/8********************

I have to wait 3 months for Lumia 800 as it was launched late in my country still I didn't go for iPhone (which was/is a major success) and didn't give up my hope as I really wanted to try Windows Phone OS. Finally in 2014 I ended up buying HTC One after using WP for two years including Lumia 920 & Lumia 925. Reason... so many local apps (like local banking, online shopping, store, restaurant) were not there and too many bugs in the phone and in OS.

WP 8 is fast but it has so many issues like apps used to crash while opening, Whatsapp, Skype, Messaging were complete failure. You guys can argue but if you have really used Windows Phones you know that these apps are crap on WP 8. Live tiles are good but not really useful or practical as they were not helping as advertised. They don't display live information always and used to confuse me when I need to open my app and thus, always ended up searching for an app.

Whatsapp never used to recognise new contacts added to phone and was never instant. Lumia 920 was so good looking phone that I was many times stopped by people in office, bars and malls and they used to ask me which phone is this. It used to make an impression but I used to hesitate to recommend it to anybody as WP used to lack many apps specially for iPhone users.

********************* Windows RT **********************

Windows RT was nowhere near to iPad or iOS Period!

Surface Pro 3 may be good but this is 2014 and everybody has already invested in iTunes heavily. I don't need it as I already bought rMBP and looking for some small tablet and guys this is the major issue with Surface Pro 3. Why would anyone go for it if everybody has laptop. Might be new users who needs new laptop will go and buy it (I would have too if I have to replace my laptop) but again Windows doesn't have good market place for Magazines, Music and Movies and people does need that in their tablets.

********************* Windows 8.1 and Desktop **************

All the machines available in store were of same price range or slightly cheaper from iMac with same spec. All HP, ASUS, DELL were ugly not even average looking but with similar price range of iMac. Why would anybody in their right mind would go for AIO from other vendors when you can have iMac the most beautiful machine with so many free goodies ( iPhotos, iTunes, Maps, Mail and complete iWork Suite).

Being a huge Microsoft fan who uses IE, Skype, Outlook.com, Bing, OneDrive but still doesn't own a single Microsoft h/w product makes me think that how MS will persuade other users who are tightly bonded to Apple or Google ecosystems.

I still believe in Microsoft as they are the most creative, innovative and versatile in their work and I dream to replace all my above listed products with MS products but today is not the day.

So my question ....

Where Microsoft is going wrong?????