The Microsoft logo hangs from a window during the grand opening of Microsoft's first retail store in Scottsdale
Microsoft has officially announced that it has killed Project Astoria, a feature that would let developers port Android apps to Windows 10. REUTERS/JOSHUA LOTT

Microsoft is reportedly working on its next flagship smartphone — the Surface Phone. Rumored specs suggest that it will be a high-end device. Fresh information also suggests that it will be aimed towards enterprise sector.

The Windows 10 Mobile OS was introduced through Lumia 950 and Lumia 950 XL. However, the operating system was not fully ready and there were hardware issues with the flagship smartphones. Hence, the Windows 10 Mobile and the new Lumia flagships failed to attract customers, Phone Arena reported.

This has apparently caused Microsoft to significantly cut jobs in its smartphone business. It has also Nokia smartphone brand to a newly established Finland-based firm. Since the Redmond giant is struggling in the smartphone market, many are skeptical on the future of Windows 10 Mobile and the forthcoming smartphones from the company.

At the recent Build Tour 2016, the Corporate VP of Windows, Kevin Gallo revealed that Microsoft will not be abandoning Windows 10 Mobile. He said that the company will be soon releasing a major Windows 10 Mobile update.

Gallo added that Microsoft’s smartphone business will focus more on the enterprise sector, The Register reported. "We’re really aligned to what we’ve done on the Windows desktop," he said, "which is we’ll lead with some high end and category innovation like we’ve done with Surface, and OEMs will go and build the breadth of the catalog."

He did not specifically speak about a Surface branded smartphone, but previous rumors have suggested that the Surface Phone will be made available in three variants to cater different audience such as general users, prosumer and enterprise. Speculations are rife that the arrival of Surface branded smartphones will result in the axing of Lumia line of smartphones.

According to the rumor mill, the Microsoft Surface Phone will be coming with a 5.7-inch Quad HD display. It will be powered with Snapdragon 830 chipset and 8 GB of RAM. Other specs include 20-megapixel Carl Zeiss camera with triple LED flash, 128 GB of native storage and Continuum support.