They could have probably produced better hardware than the other Android makers - the N9 and first Lumias were very nice devices to hold and use - but they weren't exactly coming in with a ton of momentum in the market.
Regarding the N9, it was released essentially without any marketing push, with very little availability (I think they didn't even get it into live stores, you had to order online). It was also released after the memo, so obviously only few people got it.
> LG, HTC, Sony …etc have all but disappeared and they all chose Android.
Yeah, but that took a decade or more. Going with Windows was an insta-death. Going with Android would have given them at least a decade to decide on a strategy.
Windows over Android was an insane choice, no matter which angle you look at it from.
Edit to add: the most popular vendor, by far, is Apple, with more than 60% of the market. Steve Jobs studied Sony very carefully, back in the day. It shows.
LG, HTC, Sony …etc have all but disappeared and they all chose Android. Sony especially had some solid hits back in the day.
Microsoft utterly failed Nokia but I don’t consider the decision at the time to be a terrible one.