[Metrop0218]

I think it was the device. If you read the reviews (or better yet, used one) you'll see that it suffered from severe performance issues. That seems to have been resolved in the new one (the demos on stage looked convincing, but you have to take that with a grain of salt).

The marketing/image problem was to be expected considering it was a new product entering a slightly fermented market. It was always going to take time to build a brand.

(full discloser: Windows Phone employee)