If Microsoft can stop themselves from another Sidekick episode, they might actually manage to make a phone for once. (Assuming they're trying for a phone) But having lived through the Ballmer years (WRT Linux/FOSS), I remain skeptical of any Microsoft participation in Android.
So you really mean that Microsoft sold 10 million phones last quarter? Nokia knows how to make dumbphones, nothing new there. That those appear on MS's balance sheet does not imply anything about the capabilities of MS.