This will cause OEMs to not go out of their way to build Windows 8 and Windows Phone 8 devices. Given how WP7 and previous Windows tablets have gone, they need all the help they can get. I think Surface will be more successful than any previous attempt at Windows on phones or tablets but still fall far short of Samsung and Apple. MS don't enter a market to be a distant third.
WP7 is functional but there's no compelling reason to get it when iOS and Android are better supported. The same will go for Win8-on-ARM: decent preinstalled experience, no software support.
Much like the Lumias, they will need to bring the price way, way down to get any units sold.
PS Microsoft is buying Nokia any day now so they will be producing hardware like anyone else. Nokia has junk credit ratings and a plummeting stock price, and when WP8 doesn't magically revive the company they will go bankrupt and MS will scoop them up like has been the plan all along (since Elop was installed as CEO).
