Microsoft continues its gamble with custom Android OS-based Nokia X series as it launches the latest Nokia X2 with upgraded specs and modified design.

Microsoft acquired Nokia's mobile business, which continues operations with the new Nokia X2 arriving in the market. The new smartphone is the latest addition to the Nokia X series, which was announced at the Mobile World Congress this year. The Nokia X2 is an affordable option  and comes with a custom fork of Google's Android OS.

The reports of Nokia X2's existence came as early as May, when the smartphone was listed on AnTuTu Benchmark site. The new handset features a 4.3-inch display with 480 x 800 Clearblack display and is powered by 1.2GHz Qualcomm Snapdragon 200 dual-core processor. It sports a 1GB RAM, which is an upgrade from the previous Nokia X models. The Nokia X2 also packs a 5-megapixel camera with LED flash and a front-facing VGA camera. Like its predecessors, the X2 packs 4GB onboard storage with expandable memory of up to 32GB. The battery is upgraded on the X2 for lasting life with 1,800mAh.

Microsoft has also made some modifications to the exterior. The X2 features glossy shells reminiscent of the Lumia 620. The company also introduced the "Home" button, which was not available on previous models.

"In design alone, we've built on the beautiful first generation devices, and have injected something a little different and new, as you can see by the second layering effect. It just glows!," Nokia's Adam Fraser wrote in the company's Conversations blog. "The home screen experience has really evolved with extra room for additional tiles. There's also the new home button; you can long-press the back button for easier multitasking; the new apps list view; and Fastlane has gotten richer too, with more app detail exposed."

The X2 features Fastlane access that makes navigation easy and the all-new "apps list" helps users pin frequently used apps to the home-screen, giving it a Lumia experience. The smartphone also comes with dual-SIM support, so users can use two networks simultaneously.

The company did not mention what version of Android it is using this time around, but like in the prior Nokia X models, access to a wide range of Android apps is available. But users cannot access the Google Play Store. The smartphone comes with pre-loaded Microsoft services including Skype, Outlook, OneDrive, and Bing.

Thanks to the new update to OneDrive, X2 users will get cloud storage up to 15GB, up from 7GB offered previously. Other social apps such as Facebook, WeChat, Path, Messenger, Line and Nokia's HERE Maps along with MixRadio are available too.

The Nokia X2 is expected to hit the markets around the world next month for  $135. It comes in four color options, green, orange, black and white.