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M$ will be in decline until they release their next OS, or possibly the one right after that. They made a crucial mistake by basically forcing customers to either upgrade or buy a new computer when most of them don't even need one with XP working just fine. If they make their next OSes more light weight but with powerful tools, then they'll be back on the horse as by then people will have upgraded their computers or purchased new ones and they'll be able to get the extra jump in power they needed to be capable of handling it.

Now, they might stop the decline and stagnate, but I don't see them clawing back anything they lost to Apple or Linux since they're both becoming more mainstream.