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I have read this article yesterday http://www.theverge.com/2015/4/27/8503353/microsoft-nokia-acquisition-troubles that says that MS is losing money on phones, and that Nokia was Ballmer's pet despite Nadella and others opposing it.

I think that in order to succeed in either field they need to seriously beef up their app store. I cannot comment on their home turf, but in EU apps are so few and far between, it really does not pay off to have a Windows device. I had a really nice Lumia 2-3 years ago, but it had no essential apps like banking, parking, sports, betting etc. and still doesn't in most cases. And those that were there were generally more expensive than Apple/Android, or even paid for when their iOS/Android counterparts were free.