This is a complicated scenario. first off, their focus should of been on the OS and it's licensing.
the mobile OS, particularly 8 was a unique experience to say the east.
that should be the focus as that is what made it special.
for the phone to survive, the OS has to be driving force.
all windows tablets should have a tablet OS, or "launcher" as in android and that should be windows mobile. Not to launch windows mobile apps, full wiindows apps, but managed for user through the mobile UI experience, since a tablet is technically a mobile device.
now, every windows touch device has a real tablet mode, and the OS is now introduced as having a true mobile experience on Windows. Not trying to make a phone that runs windows.
This is a bottom up concept, the OS needs a top down strategy.
Top being the experience. so, how do we give hundreds of millions of Windows tablet users a real tablet experience and at same time, building an OS user base that is already in place, and willing.
Step one would be to make the PC in tablet capable of all phone and cellular expectations for communication and not to catch up to IOS.
they can't catchup, it's not a phone and so not in their radar.
Now that you have millions of users loving of hating the optional tablet mode experience, you can introduce a windows tablet phone experience in small form factor that would only contain the tablet UI that they are all familiar with.
now, instead of building generic windows app for the mobile platform, you build windows mobile OS style apps for IOS and Android.
you see, these users are only on Microsoft because they have to, they need to build experience of Windows through their proliferation of Windows Mobile styled apps.
now they have a phones and never had to build a market for it.
First and foremost, the OS should by design not support fart apps and snapchat. now it's not developers that don't like windows causing negative reviews among the hip crowd. It is now full blown extention, second screen for windows, Xbox, office, all while e posing IOS users to see Microsoft as not just a fun device, but rather a required device to tap into full Microsoft experience across all devices.
of course, it can dial and make a call as a bonus.
You can't build a phone these days unless it offers the most insane user experience for windows.
now developers are given android, IOS tos to build windows mobile look, without the stigma of getting their development of apps on a platform that wasn't not developed for it.
so, this is my top down the approach..
Windows hand held device has now become a phone, but it did it from backdoor.
my 2