Tech experts have been claiming since last year that the highly anticipated Surface Phone will be unleashed by Microsoft this year. Microsoft CEO Satya Nadella gave a hint at the end of 2016 that the company could be working on an “ultimate mobile device.”

The Windows 10 Mobile OS market share is less than 1 percent. One of the reasons behind is that the Redmond giant has discontinued the Lumia series of smartphones. The Lumia 650 smartphone is the last smartphone from Microsoft that was released in February. Hence, there is no new Microsoft smartphone running on Windows 10 Mobile.

Lumia 650

In last year’s interview, Nadella said that Microsoft does not want to launch “me-too” phones. In other words, the company wants its upcoming smartphone to differentiate from other leading smartphones. He confirmed that Microsoft will remain in the smartphone market by delivering a unique and ultimate mobile device experience.

A new interview with Marketplace’s make me smart, Nadella again confirmed that Microsoft will manufacture phones. He has once again stated that the new phone will not be like the traditional smartphones. Continuum is expected to be one of the features that are expected to be available on the upcoming Microsoft smartphone. The feature will allow the users to make use of the smartphone’s prowess to us it like a desktop. In order to differentiate from other brands, the upcoming Microsoft phone will have a unique design like the one seen on Surface devices.

It is interesting to note that several sources including Windows expert Thurrott have revealed that the Redmond giant is internally testing a mysterious phone with a revamped edition of Windows 10 Mobile.  The UI of the new OS is speculated to be different from what is available on current Windows 10 Mobile OS version.

At present, the redesigned UI is in a nascent stage and it is unlikely to support apps made for the older version of Windows Phone OS and it is unlikely to support Silverlight apps. It is pegged to support UWP apps. Also, nothing is known on the hardware specifications of the new mysterious smartphone.

There is no confirmation on whether this device is the highly rumored Surface Phone. There is information available on whether it will be launching this year. Whether it launches this year or early 2018, it will be one of the major competitors to the iPhone 8 that is speculated to feature a 5.8-inch edge-to-edge OLED screen, IP68 certified body, dual rear cameras, and all-glass design. The highly awaited iPhone 8 is speculated to launch in celebration of the 10th anniversary of iPhones.