The Android tools now have essentially-fake support for Java 7. Basically, they updated dx (the classfile-to-dex converter) to not throw exceptions immediately upon encountering a v51-format (Java 7) classfile, but, rather, to throw exceptions whenever such a file actually contains Java 7-specific bytecode features (MethodHandles, InvokeDynamic, and related features). This means that Android has support for the syntax-only features of Java 7 (the ones implemented entirely upstream in javac), but falls short of implementing any of the actually-interesting platform features that would have required changes to the phone-side VM.
Edit: The reason I bring this up (apart from being a little bit sore about it, personally), is that this means that Android is actually really far from Java 8 support, as these features were added in Java 7 at least partially to facilitate lambda support in Java 8 (see http://cr.openjdk.java.net/~briangoetz/lambda/lambda-transla...).