The devices and services unit of Microsoft Corporation (NASDAQ:MSFT) is speculated to be developing a Lumia smartphone powered by the Android operating system of Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), according to technology website @evleaks on Monday.

Android Nokia Lumia

The technology website did not provide additional details regarding rumor. It just simply wrote, “Big News: Android-powered Lumia incoming from Nokia by Microsoft.”

Microsoft recently unveiled Nokia X2

Microsoft Corporation (NASDAQ:MSFT) unveiled Nokia X2, its first smartphone phone since acquiring the handset and services unit of Nokia Corporation (ADR) (NYSE:NOK) for $7.1 billion. The Nokia X2 an updated version of the Nokia X smartphone introduced by the Finnish company prior to the completion of its transaction with the software giant.

Nokia X2 just like its predecessor provides access to Android apps and the services offered by Microsoft Corporation (NASDAQ:MSFT) including Outlook.com. Skype, OneDrive, and some X Box games.

At the time of the launching of Nokia X2, Microsoft Corporation (NASDAQ:MSFT) said the device is part of the Nokia X family of affordable smartphones designed for the “next billion people.” The Nokia X2 is a dual-sim smartphone and is $135 or €99.

Microsoft could benefit from Android-powered Lumia smartphone

Some technology observers suggested that Microsoft Corporation (NASDAQ:MSFT) could benefit from Lumia smartphones powered by Android operating system as it could attract consumers to use its services.

Take note that the Android operating system dominates the smartphone market with 81% share during the first quarter, according to the report from IDC.

Given the fact that the Nokia X2 is powered by a forked Android operating system, it is likely that the devices and services unit is developing an Android-based Lumia smartphone. Technology observers believe that Microsoft Corporation (NASDAQ:MSFT) is adjusting its strategy to be able to boost the sales for its software and services.

They also suggested that the software giant is targeting the first-time smartphone buyers particularly in developing countries with its Nokia X2 and perhaps with the rumored upcoming Lumia smartphone powered by Android operating system.

Microsoft signed patent cross-licensing deal with Canon

Microsoft Corporation (NASDAQ:MSFT) signed a patent cross-licensing agreement with Canon Inc. (ADR) (NYSE:CAJ) last week to allow greater access to each others patents including mobile consumer products and digital imaging. The patents of the Japanese imaging company is significant for the software giant because its Lumia smartphones highlight its camera features.