The Microsoft Lumia lineup could be canceled soon as the Redmond tech giant is rumored to be working on a Surface Phone in three models with  pre-installed Windows 10 Mobile OS.

The Surface product line includes the Surface, Surface Book and Surface Pro devices, which have been successful since their release. It therefore comes as a no surprise that Microsoft could launch a Surface smartphone soon.

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The Surface Phone is reported to be already in the works and it is expected to be launched early next year. The three variants of the phone will cater to general users, business and prosumer respectively. They are also expected to come at different prices but all three variants are likely to support the Microsoft Pen technology.

With the arrival of the Surface Phone, analysts the Lumia smartphone line could be discontinued. Microsoft acquired Nokia Devices and Services in 2013 and inherited the Lumia brand.

Many experts agree that Microsoft may stop targeting the low-end budget phone market and introduce a stronger product to the market. The company wants its OEM partners to adopt the Windows 10 Mobile, and without the Lumia, it would not have to compete with these manufacturers. Microsoft has to diversify its market to grow, and with a more robust mobile OS coupled with the right hardware, it could effectively make waves and disrupt the smartphone market.

Microsoft is expected to bring major improvements to Windows 10 via the Redstone 2 update, which could be out by Spring 2017. The Microsoft Surface Book 2 and Surface Pro 5 are speculated to be unveiled with the Windows 10 Redstone 2 update next year and it is possible that the Surface Phone will be introduced at the same time as well.

TagsMicrosoft, Surface Phone, Surface Pro, Surface Book, Lumia