I don't think he's referring to Nokia's brand name. Personally I'm looking forward to the Nokia phones, though not holding my breath on their success.
Given the pseudo-acquisition of Nokia, MSFT has a golden opportunity here to create an end-to-end appliance the way Apple does; to make sure that they're selling a sexy package, instead of selling a sexy OS in blah hardware (i.e., all of the WP7 launch phones) or a blah OS in sexy hardware.
They can finally do the vertical integration that IMHO is sorely needed if anyone hopes to compete at Apple's level.
Buuuuut given MSFT's track record in recent years, and with the departure of some key heads (who pushed for vertically integrated "experience"-building, instead of OEM licensing), I'm not banking on it happening this way.