Microsoft has been working on their new "Surface Phone" and it seems that the new tech will give both Apple and Samsung a run for their money.

In a report by Tech Radar, it seems that Microsoft has been working on the device for some time now, as new Devices Head, Panos Panay, seems unhappy with the performance of the Lumia line, and now that he's in charge, his plans are coming to fruition.

So what does Microsoft have this time that will cause trouble for the competing brands?

At the moment, the Surface Phone is said to still be in its early engineering days, but there have been rumors that the device will use chips supplied by Intel instead of Qualcomm. With that, it will mean that the Surface Phones will have more in common with Desktop PCs and Laptops thant he typical run-of-the-mill smartphone.

That being said, the Surface Phoe will carve an entirely new category of devices, which can be considered as a mobile device or a desktop one.

This is not such a long shot, as Tech Radar already noted that Microsoft has been trying to turn phones into desktop-style devices for a while now, as they did with their project dubbed as the "Continuum." At this point, they are in the next steps for their aim for full software compatibility.

Windows Central has reported that the Surface Phone may be slated for release by May next year, but there is little that is known about the device. However, it has been said that it is more of "Panos's phone" than anything else. As the outlet reiterated, the Surface Phone is designed by the Surface team, whcih is due in the second half of 2016, and may run on x86 apps with an Intel Core. It is also likely to be timed with the release of the Windows 10 Redstone, although there is not much that anyone knows beyond that.

There are reports from Phone Arena, however, that said the Surface Phone is going to focus more on productivity instead of its specs, and the flagship model will be powered by a Snapdragon 820 Chipset with the advanced cooling technique by the Lumia 950 XL. Of course, this goes against the possibility of using an Intel Core, but with very little confirmed news at this point, all updates not coming from Microsoft are considered rumors.

Do you think Microsoft has it in them to compete with the iPhone and Galaxy devices from Apple and Samsung?