This really is straightforward. If MS sold phones themselves, the HW would only be a mean to an end; the WP ecosystem or rather the MS ecosystem. How do you do that? By selling OK but mediocre devices (spec vise) at premium price? I don't think so, but that is what MS/NOK is trying to do. The right way is to flood the market with relatively inexpensive devices and provide 1 or 2 top dogs to pull the pack. The top device has to be absolutely top of the line, something that sets a standard. The Lumia 920 has some top dog features, but is it enough?

The only way for Nokia to survive in the smartphone business is if WP is successful. Obviously pri one is to make WP successful, it doesn't happen by itself, and certainly not by selling overpriced HW.

It's like Nokia haven't learned a single thing from the whole Symbian/Maemo crash. They still believe an ecosystem somehow by magic just grows from nothing. The ecosystem has to be the single focus, it is the only origin. Once the ecosystem is in place, THEN the ball starts rolling. Then they can start making profit on HW, but only by providing at least one undisputable top dog. They only need to do it.