It's a good fit for the printers. The licensing and overhead are expensive for Microsoft. My friends working on WinCE/XP for printers might be looking for a new job.
This will give it some huge market share in printers. Not sure if it changes anything for phones.
Maybe I need to be thinking up mobile apps to run in HP Printers. My last job at HP was actually enabling third party apps on HP printers in XP/CE.