Are you arguing that MS lost the smart phone race because they were too expensive? I don't know anyone who didn't buy a Windows Phone because of cost.

They lost because finding good Windows Phone apps was difficult. This is why I stopped using a Windows Phone, and why everyone I know stopped using a Windows Phone.

I could pick up a performant Windows Phone for $40, and I wasn't happy with my Android until I spent $200+.

Not to mention one of the largest companies in the world right now makes most of it's money off of selling a mobile OS's.