Microsoft is pretty much done with the Lumia brand but not entirely over with making new smartphones. Rumored and reported many times over, Microsoft plans to release Surface Phone next year.

Microsoft Surface Phone variants and rumored processor

Microsoft is reportedly working on two variants of the Surface Phone one with 4GB of RAM and one with 6GB. Phone Arena reported that Qualcomm's new Snapdragon 835 processor, which is also rumored to be the processor of choice for Samsung's Galaxy S8 series, would power both variants.

Furthermore, there are also rumors that a third model is in the offing, an 8GB model with a 512GB internal storage capacity. The 4GB and 6GB models are reported to carry 128GB and 256GB of internal storage respectively.

Microsoft Surface Phone screen and OS

Apparently, the Surface phone will sport a 5.5-inch QHD screen with a resolution if 1440 x 2560 pixels and may come with "laptop accessories." Higher spec models of the Surface phone can run X86 apps in Microsoft's Continuum mode, according to Trusted Reviews, however, the 4GB model was reported would not be able to just yet. All models, however, are reported to run Windows 10 Redstone 3.

Meanwhile, Microsoft CEO Satya Nadella referred to the future handset as an "ultimate mobile device." The claim is reinforced by a Tweet by Evan Blass tying the still undisclosed handset to be powered by a laptop-class Intel processor.

Powered by a laptop-class Intel processor, would this have blown your mind? pic.twitter.com/0n2yZPvU65

— Evan Blass (@evleaks) November 4, 2016

Nadella also stated that once Microsoft delves into the smartphone market again with the Surface Phone, it would be with a device that can stand tall among the intense competition in the smartphone industry. In reference to this "ultimate device," Microsoft is slated to bring something completely new to the market.

The Surface Phone is expected to create a splash in the smartphone market in late 2017. If rumors and speculations of its specs and features built from the ground up are proven true, it could as well be a game-changing device.