I don't see how they're trying to out-Apple Apple in this case. They're releasing a mobile operating system for third party vendors to create hardware for. Remove "mobile" and this is the exact same thing they've been doing all along.
> Microsoft are kings of productivity software and the corporate desktop. They own business communications. They own corporate email. So when it comes to revitalizing their phone product, they focus on the twittering tweens?
Are you forgetting that they're also still king of the consumer desktop? I highly doubt that their 85% market share[1][2] is business alone. Apple isn't selling more computers than all manufacturers combined[3].
[1] http://marketshare.hitslink.com/operating-system-market-shar... [2] http://www.statowl.com/operating_system_market_share.php [3] http://www.engadget.com/2012/05/01/hp-reclaims-top-spot-in-p...