While it’s great to see Nokia producing Android handsets — especially after its acquisition by Microsoft —  its existing Nokia X family consists only of affordable devices with entry-level specifications. That could change soon, however, with the launch of an Android-powered Nokia Lumia smartphone.

Many expected Nokia’s Android-powered devices to die as soon as Microsoft took control of the company, but the software giant appears to be embracing Google’s rival platform. It has already added a new handset to the Nokia X family in the shape of the X2, and it could be about to step up Android support in a big way.

Incredibly reliable leaker @Evleaks today reported that Microsoft is developing a new Nokia Lumia smartphone that will use Android instead of Microsoft’s own Windows Phone operating system. We don’t have any information about its specifications yet — or when it will be available — but we have good reason to get excited. Very excited.

If Microsoft does introduce a Lumia device powered by Android, you can expect it to be a little more exciting than than the Nokia X family. If it’s taking the Lumia name, it’s likely to be a premium device with significantly better specifications — and maybe even Nokia’s trademark PureView camera.

Such a device could damage sales of other Nokia Lumia devices — specifically those powered by Windows Phone — but Microsoft’s priority at this stage may be to make Nokia’s hardware business a success whatever the cost, even if it means neglecting Windows Phone for a while.

• SourceEvleaks