How can they earn back their $6.4 billion investement in Nokia with $40 smartphones? Marketshare isn't everything here. Someone who buys a $40 phone buys it to make phone calls and doesn't want a data plan (like my mum). They will not load the phone with many apps, if any at all.
They won't spend a single penny on their phone, but they will kick and scream if they don't get windows & ms office at their workplace.