If you can't see that MSFT is in serious trouble then you aren't in touch with present day reality. They may issue a special dividend (doubt it), and they may hang around a while. They have a lot of cash. But until they actually wake up and, most importantly, catch up, they're in deep trouble. Most of retail that buy MSFT these days (aside from the XBOX, granted), are people that buy in spite of AAPL.
Go ahead and ask you friends with a Windows phone, if any of your friends even have one, what they think of iPhones. Or iPads. Or OSX. Or whatever. They hate them.
But is that actually enough for MSFT to be viable?