Four months and one change of ownership later, Microsoft has announced a second-generation Nokia X handset: the Nokia X2. It retains the mix of Android Open Source Project (AOSP) core coupled with a custom skin that the first three Nokia X phones had and gives the internals a healthy upgrade.

Inside the X2 is a dual-core Snapdragon 200 processor running at 1.2GHz (up from a 1GHz dual-core Snapdragon S4), 1GB of RAM (up from 512MB and 768MB, depending on model), and a 5MP autofocus camera (up from 3MP fixed focus). The screen is a little larger, too, at 4.3 inches (from 4 inches), though it retains the 800×480 resolution. The X2 also takes two SIM cards.

The software is updated to what Microsoft calls "Nokia X software platform 2.0." This retains the basic look and feel of the original Nokia X interface—a grid of mostly static icons, a history of recently performed actions called fastlane—and adds a third screen that Microsoft vaguely describes as a "Lumia-inspired apps list." There are also some hardware changes to make using it a little easier. The first Nokia X devices had a single physical button that served dual purpose as a back button and a home button. The X2 now has two separate physical buttons, one each for back and home.

As before, the Nokia X2 does not include the Google Play apps, and so omits many of the apps that smartphone users in the US and EU might expect to find. However, Microsoft claims that the first-generation Nokia X sold well in countries including Pakistan, Russia, Kenya, and Nigeria—countries where the lack of Google Play (and newest Android functionality) is less important.

Does this represent Microsoft's continued backing and support of the AOSP handsets? Sascha Segan at PC World suggests not. The X2 was, obviously, created prior to the finalization of Microsoft's purchase of Nokia's handset division, and as such represents a Nokia project brought to market, and not a Microsoft-driven initiative.

Segan cites insiders close to the project who say that Microsoft was (unsurprisingly) displeased at Nokia's Android adventure, and that the project was driven, at least in part, by disquiet among some Nokia employees at Microsoft's influence (and eventual takeover), and in part by a desire to reach cheaper price points. With Windows Phone 8.1 enabling hardware just as cheap as that used for Nokia X, the latter rationale has largely evaporated. With Microsoft now owning the Nokia handset, the former rationale is irrelevant. As such, Segan suggests that Microsoft may not have any long-term commitment to the Nokia X platform.

The X2 is due to be released in July, priced at around €99 (about $135). Initially it will be available in orange, black, and green, with yellow, white, and dark grey coming later. Except for the grey, all the phones have a gloss finish.