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The company has been working hard to revive the dying brand which the Lumia series has been, and the Microsoft Mobiles at large need a major revamp soon if they intend to score a win in the hardware markets.

Capossela drew comparison to the company's successful Surface program, which caught the public's imagination despite "a bunch of early misfires".

Unlike the Lumia phones, the said handset will be completely developed by the software giant.

Microsoft's Lumia 950 and 950 XL have only been out for about a month, but those handsets may only be a stepping stone to the next big thing for Windows 10 phones. It's not a full Windows-PC-like experience, but it is quite close and the competition hasn't managed to do that yet. Capossela reportedly told Mary Jo Foley in response to a query on Lumia 650 release date that "they [Microsoft] had not announced a release date yet", thereby unwittingly confirming the existence of the new device. It is not being termed as the iPhone killer or the Samsung killer or better yet not being labeled as the flawless smartphone replacement.

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The pricing and availability details are scarce at the moment, but we will keep you posted as and when Microsoft officially launches the Surface Pro 4 on January 7. The firm hopes its future "Surface Phone" could become as popular as the Surface tablet.

While Capossela did not actually mention a Surface Phone and its targeted release date, he hinted at a device with a description similar to the one in the rumors. In essence, this makes the operating system update process for Windows 10 Mobile more akin to iOS than what we've seen with the fragmented nature of Android.

Still, while reports suggest it could come in the first half of next year, Capossela seems to indicate this next Microsoft phone could be a little ways off.

However, nothing is set in stone at the moment, and the Surface Phone could be canceled at any time if Microsoft feels that it can't compete with other flagship smartphones available on the market.