The report states that the purpose of developing the Android phone Normandy is not to redeem Nokia in the mobile phone industry, but to coerce Microsoft to give in to the deal. The reason is that, at the beginning of the discussion for acquisition, Nokia wished not only to sell the smartphone business but also the feature phone business. To create a sense of crisis in Microsoft, Nokia allowed the development of lower end Android phone.
From the results, Nokia's strategy has been successful. Microsoft has bought the entire Nokia's mobile business at US 5 billion dollars, and spent another US 2.2 billion dollars for Nokia's patent rights. The original development team for Normandy has changed their focus to wireless charging and wearable devices.
According to @evleaks, the Normandy has designs similar to Lumia, and available in five colours. The operating system will be 'modified' from Android, which will be similar to the one used by Amazon Kindle Fire.
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