Agreed, but people Nokia's handsets were traditionally sold under the Nokia brand name, not Lumia or whatnot. Everybody knew that there was a lot more to IBM than ThinkPads, but most people didn't realize that Nokia had a huge business selling network switching infrastructure to telcos.
I think people just didn't realize that nokia wasn't just a company that made phones (I didn't know that until just now at least).
Understandable. Similarly Sony is a financial services company , it's core business is insurance.
Think about it like this: IBM made laptops. IBM sold the laptop division to Lenovo. Lenovo now makes laptops using IBM's old brandname (Thinkpad). IBM still exists and is doing other stuff.
Ergo, Nokia made phones. Nokia sold the phone division to Microsoft. Microsoft now makes phones using Nokia's old brandnames (Lumia and Asha). Nokia still exists and is doing other stuff.