To recover from the loss in their Mobiles Division, Microsoft is believed to release a new phone, which will be a hybrid of their Surface releases and Lumia Phones.

Expected to be called the Surface Phone, the device is claimed to be the most powerful one that the company will create, as per The Rem.

The same report is positive that the device will come out with a 4GB of RAM and 250GB of internal storage.

It is also claimed that the camera of the device will be a powerful one at 21MP for the main shooter and 8MP for the front-facing camera.

The Rem mentioned that the phone may also come with a 6-inch screen and run on Intel Skylake technology.

Meanwhile, Windows Central said that the Surface Phone may be released in the second half of next year.

It added that Surface vice president Panos Panay and his team are working on a "premium flagship phone."

But when asked if they are already working on a Surface Phone, Panay has failed to either confirm or deny the reports to GeekWire.

"People love asking that. Again, nice try. I think you have to continuously check the landscape of what needs to happen next in all our device categories. We're working on a lot of stuff," he added.

He noted that their plan is to bring together their line of devices to provide better user experience to their customers.

Windows Central's Daniel Rubino noted that Microsoft could still be exploring the features, design and hardware of the upcoming device.

He also mentioned that Intel is also believed to be involved in the development of the chipset for the device.

"Intel's connection to this project is the most tantalizing. Many speculate that this will be a device that runs an x86 chipset or is something much more powerful than current Qualcomm Snapdragons," added Rubino.

Aside from this, the Surface line VP may also develop a phone that could run x86 apps and timed with Windows 10 Redstone.

But because of these next-gen offerings, Windows Central said it will also be an expensive phone.

In addition, BidnessETC said that the aim of releasing the Surface Phone is to match Apple "in terms of hardware-software integration." It added that this upcoming release will bridge the gap in Microsoft's hardware offerings.

The introduction of this new device, as per the same report, is expected to boost sales of the Surface series, but it noted that it may not be "the most revenue-generating smartphone in the world."