There have been plenty of leaks suggesting that Nokia (NYSE:NOK) has an Android phone in the works, known as Project Normandy. This rumored device would run a heavily modified, or forked, version of Android, and remove all of Google's (NASDAQ:GOOGL) services. It would target the low end that's currently being addressed by the Asha lineup. Asha has seen some modest success but uses an aging operating system, so using a newer OS could help. Nokia is reportedly going "full steam ahead" with launching this device in 2014.
With Microsoft (NASDAQ:MSFT) looking to close its acquisition of Nokia's devices business early next year, you'd think that Microsoft would want to scrap the device immediately since Android competes directly with Windows Phone. However, Microsoft might still be considering letting the device launch since it could acquire low-end customers in Bing and Skype and other Microsoft services. If the platform looks nothing like Android and has no ties to Google, it doesn't matter that it's technically based on Android so long as Microsoft can better address the low-end segment.
In this segment of Tech Teardown, Erin Kennedy discusses Microsoft's rumored phone with Evan Niu, CFA, our tech and telecom bureau chief.
Erin Kennedy and Evan Niu, CFA, have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Google. It also owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.