The Microsoft Lumia 940 is expected to be available in the market between July and August as its release date is said to coincide with the Windows 10 official release.

Gospel Herald reports the upcoming phone release will run Windows 8.1 but has the capability to be upgraded to the new Windows 10 once the latter becomes available.

The device will reportedly come with a free one year subscription to Office 365 and a 1TB OneDrive storage which can be accessed through Office using a PC, Mac or Tablet. Microsoft's new smartphone is also entitled to 60 minutes free Skype Unlimited worldwide every month.

As for additional features, the Lumia 940 is rumored to sport a 5.2-inch display and it is said to run on a 2.7 GHz Snapdragon 805 processor and Adreno 420 graphics with 3 GB RAM.  The new handset is also equipped with expandable storage from 32, 64 to 128 GB.

The Lumia 940 is slated to arrive at the market for $620 or a price closer to that since this is current selling price of the Nokia Lumia 930.  

"It said the Lumia 940 should not exceed the $726 as Microsoft is also pushing for its Windows 10 on smartphones," noted Gospel Herald. 

Meanwhile, TechTimes has learned that the Lumia 940 is rumored to have a 25-megapixel Pureview rear camera which can capture 4K video at 60 frames per second, while the front-facing camera may be 5 to 8 megapixels.

The Pureview technology in the camera is claimed to come with serious optical image stabilization and a maximum f/2.8 aperture which will make low-light shooting better and clearer.

Contrary to Gospel Herald's report, TechTimes claims Microsoft's upcoming flagship device will run Windows 10 out of the box because this software goes well with the high-end processor the device has.

With the near release of the Lumia device, the mobile world is also anticipating a bigger counterpart called Lumia 940 XL, which is believed to have 5.7-inch display. Below are some of the larger phone's specifications as per PC Advisor:

1. Windows Phone 10

2. 5.7in Quad HD (2560x1440) screen

3. 4GB RAM

4. 32GB of storage (plus microSD support up to 128GB)

5. 25Mp rear camera, 5Mp front camera

6. 3950mAh battery

The Lumia 940 XL is also rumored to be a good catch for mobile users just like its smaller version.

"These two flagship smartphones may be gearing up to compete head-to-head with Apple's iPhone 6 and iPhone 6 Plus," noted TechTimes.

Other rumored features of the two phones include: iris-scanning capabilities, dual-SIM support, built-in upkeep for pen styluses and 3D-like interactions.

PC Advisor said that the alleged previously leaked concept images for the two devices are not the "real deal."