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Nokia working on new Android smartphone: Nokia C1 rumoured to be first flagship device post Microsoft acquisition. Reuters

Finnish technology giant Nokia, whose services and devices business was acquired by Redmond-based Microsoft, very recently launched its first Android tablet called the Nokia N1 that runs the latest Android L lollipop straight out of the box.

Now, in line with Nokia's N1, various rumours hint at the possibility of Nokia launching a new Android smartphone, perhaps after its licensing agreement with Microsoft ends.

As of now, Nokia cannot manufacture smartphones by virtue of its branding license agreement with Microsoft which is said to end only in late 2016.

Nonetheless, according to a new report, Nokia's next Android smartphone will be called the Nokia C1, and this device is rumoured to run the Android 5.0 operating platform straight out of the box.

Various other technical specifications of Nokia's speculated C1 have also surfaced, and according to these reports, Nokia C1 will incorporate a 5in display along with featuring an 8MP rear camera.

This device is also rumoured to pack in a 2GB RAM, 32GB internal storage, and a 5MP front camera.

An Intel processor is believed to drive the Nokia C1 handset.

Nokia's C1, when official, is likely to cater to buyers preferring mid-range smartphones to do a bit of both office work as well as watch movies within their smartphones.

The above rumour seemingly falls in line with earlier reports that hinted at the possibility of Nokia making a comeback to smartphone manufacturing after the end of the licensing agreement period with Microsoft.

However, Nokia could also outsource smartphone manufacturing to third-party manufacturers.