A leaked Nokia phone without a capacitive button is confirmed to be an Android-based device if we are to believe writers from The Verge who claim that they have confirmed this fact with sources. The image of the phone was leaked by @evleaks which is known to be a reliable source based on track record.
The Nokia device is codenamed Normandy and actually runs a forked version of Android. This is a similar idea with how Amazon used Android to make its own OS and not rely on Android’s app ecosystem. The Nokia Normandy will be an Asha-level device, which means that it will have low-end specs and will also have a low price.
If an Android-based Nokia phone is really in the works, this means that Nokia’s version will not look like Android as we know it and will use Nokia’s own apps. But then again, considering that it is Android-based, the tech geniuses of the Android world will surely come up with a way to bring Android apps to the Nokia device. Android fans have been clamored for an Android-based Nokia device and this could make still make a lot of people happy even if it is indeed a low-end device. Nokia has a reputation of creating well-designed and well-built devices and users want their favorite OS to run on its devices which, for now, only run Windows Phone or Symbian.
Now we all know that Nokia has been acquired by Microsoft, so an Android-based Nokia phone does not make sense. This means that if the Nokia Normandy is real, it might have been conceptualized before the Microsoft acquisition and it ever it will see the light of day, it will get released before Microsoft formally takes over the reins at Nokia. According to The Verge, the Nokia Normandy will have a 2014 release.