I wouldn’t blame Microsoft if they dumped Windows Phone altogether, it still doesn’t seem to have any momentum in the mobile market. At some point the company has to put its resources and focus into something that serves its bottom line, and Windows Phone just doesn’t seem to be it.
But I’m skeptical that Microsoft is really ready to terminate Windows Phone. Obviously they are aware of Nokia’s Android phones, but Microsoft seems to regard Nokia’s Android as something to leverage to get emerging market users onto Windows Phone devices.
The plan seems to be that Microsoft will replace Google’s services with its own on the Nokia Android phones. Then, once hooked on Microsoft software, the emerging market users will transition later to Windows Phone devices. I’m not sure that Microsoft’s software provides anywhere near enough value these days for this to actually happen.