I see what you're saying, but I don't agree with this characterization.

(1) Internet: Netscape came out in 1994, and the internet tidal wave memo was 1995 and internet explorer came out the same year. Windows was rewritten with a focus on the networking stack, with Windows NT coming out in 1993 before the web boom. The internet's value is based on network effects and while you are right that they weren't first to market, they embraced it quickly and if they hadn't it likely would have been disastrous.

(2) Stock price: if you bought MSFT in October the year the iphone came out in 2007, you would take 6 years to break even. If you bought at the top in 2000 you wouldn't break even until 2016. This is a company that was limping along. During the mobile phone boom you'd have been better off putting your money in treasuries than in MSFT.

Yes they survived and were able to do well later. But my original point still stands: if you were running MSFT and wanted to be successful you would have embraced the internet and mobile. Deliberately sitting out a major technological innovation is not a recipe for success because the risk of ruin is very high. And the risk of becoming IBM is even higher.