WinRumors believes that Microsoft is planning to announce a more flexible hardware spec for Windows Phone 7, possibly even at MIX 11.
WP7’s Chassis 1 spec was at the time of release high, almost punishingly so, although technology has marched on a little since then. Lower specs may facilitate cheaper devices, helping WP7 to compete better against Android at the lower end of the market. Nokia, of course, are famed for producing quality low-spec handsets, and this move may be a result of their new influence on WP7 – but it may equally not have been. We can only hope that a lower spec does not damage the fast, slick, and above all coherent user interface that is one of WP7’s greatest strengths.