Does not really matter who was, who is, or what if, about buying Nokia's headset devision. Its a done deal and now they have to make the best of it. To ignore the smartphone market would be a big mistake. But then I don't think that will happen. They cannot be successfull without at least part of the smartphone market. How much they need is the 64,000$ question?
The trouble is they started out so far behind its going to be h---, to catch up. While they are doing some good things, Android and IOS are not sitting on they hands waiting for them to catch up. Apple has survived quite well with their Mac with a tiny percent of the market. They are starting to slip in the smartphone market share because only apple makes apple smartphones. Android has a ton of players and WP8 has at least a few and looks to add more. In time Microsoft may pass Apple or at least catch up to them. But Android is gone. Google will have to make some horrible mistakes to allow things to slip away.