Well, that didn't last long... Just when Microsoft surprised us by releasing the Nokia X2 Android smartphone, it seems they were only teasing the possibility that they were planning to keep the Android phone in their lineup. Instead they just announced they are killing it off.

Microsoft Vice President of devices and services division, Stephen Elop just shared a long blog post in which he confirmed that Microsoft will stop producing the Nokia X Android line of phones and transition all of their smartphone development to Windows Phone. It looks like their plan is to build budget-friendly smartphones to target emerging markets. Here's a quote with some of the details,

We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia.

In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices.
It's possible we will still see a Nokia X phone lineup, but it won't be an Android device. Ultimately, this probably should come as no surprise. In fact, it was actually more surprising that they went ahead and released the Nokia X2 Android device. It's too bad we will likely never see a high-end Android device developed by Microsoft. Ah well... that's that.

Source: Microsoft