Fresh rumors indicate that Microsoft will be releasing three variants of Surface Phone smartphone. Early speculations suggest that the company may discontinue the Lumia series of smartphones with the launch of Surface branded smartphones.

Microsoft has met huge success with the launch of Surface branded devices like Surface, Surface Pro and Surface Book. It is now being reported that Microsoft will be expanding its Surface lineup by introducing a Surface branded smartphone.

Rumors are rife that the company is already working on a Windows 10 Mobile OS powered Surface Phone that will arrive in three different versions that will be aimed towards different customers like general users, prosumer and enterprise. Each variant is expected to sport different configurations. Also, Surface Phone release date is expected to happen in early 2017, Windows Central reported.

The Surface Phone will reportedly arrive with Microsoft Pen technology that will carry support for smart ink feature. Continuum, a feature that allows Windows 10 Mobile smartphones from Microsoft to be used as full-fledged PCs, will be one of the major features of the Surface Phone handsets.

By the introduction of Surface Phone smartphones, Microsoft is likely to axe its Lumia lineup that it acquired from Nokia in 2013. There are several reasons as to why the Redmond giant may want to discontinue the Lumia lineup.

Speculations indicate that it will not be releasing low-budget phones in the near future as it will work with other OEM partners like BLU and Alcatel to release such handsets. Another reason could be that the company may want penetrate and disrupt the smartphone market once again by launching a new smartphone lineup.

Early rumors suggest that Microsoft Surface Phone release date will be set in spring 2017. It is expected to launch alongside with other products such as Surface Pro 5 and Surface Book 2. Both the laptop-tablet hybrids are expected to come preloaded with Windows 10 Redstone 2 that will carry major improvements for the OS.