At least HTC is profitable, along with a host of other OEMs that target China, India, and Europe. The reason that other OEMs like LG and Motorola are not profitable (but they aren't losing anywhere as much as Nokia is) is less to do with picking Android and more to do with the fact that they were doing very poorly before Android came around and Android was the main reason they are still relevant today.

As others have stated, there's nothing wrong with Nokia building out Windows Phone phones. The issue is exclusivity, which is understandable given the $1 billion a year Microsoft is paying them. I suppose we will see which way Nokia turns once that contract ends (whenever it does end).