If they had carried out that switch (and survived in the short term - they were on the brink of bankruptcy at the time), Nokia would be doing pretty well nowadays.
I think their situation is somewhat similar to Sony. Sony is also well-recognised electronics brand globally. But Sony pushes on with its 'premium' Android smartphone brand (Xperia).
Xperia is the closest you can come to a Nokia-like Android phone these days: it has a great physical build, good camera and excellent battery life. The pre-installed apps seem like they were carefully selected unlike with Samsung phones.
Sony's mobile division is not doing super-well, but it's not a disaster either. I'm myself a proud owner of a Xperia Z3 device and will likely also buy my next smartphone from Sony. I keep wondering, is the existence of a 'premium' Android manufacturer really an oxymoron, like Nokia's management in 2013 predicted?
PS. Nokia is doing pretty well nowadays, though not as a handset manufacturer.
I say this as an unfortunate shareholder.