• Microsoft's upcoming Surface Phone, codenamed Project Juggernaut Alpha, is said to possess the powers of a PC.

Microsoft's upcoming Surface Phone, codenamed Project Juggernaut Alpha, is said to possess the powers of a PC. (Photo : Facebook/ PhoneDesigner)

The very purpose of Microsoft releasing the rumored Surface Phone in the latter part of 2017 is to "re-enter the smartphone market in an ultra-niche segment," a new report said. And it will be an epic slugfest between the Windows 10 flagship device and the bet of industry leader Apple, which is expected to rollout the reengineered iPhone 8 next year.

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Following hints from Microsoft CEO Satya Nadella recently that the company is indeed working on "a unique and ultimate mobile device" without really pointing to the Surface Phone, Forbes reported that it makes sense for the Windows 10 maker to build a smartphone version of the hybrid device. The brand, after all, has gained significant traction that Microsoft could use to gain entry in the high-end smartphone market dominated by Apple's iPhone.

The Surface Phone, according to the same report, is Microsoft's next revenue generator and the push itself will signify the tech giant's intention to put behind its forgettable smartphone attempts in previous year. It appears that the business behind the Surface Phone thrust is focused on the premium market and generating healthy profit margins for Microsoft.

Analysts believe only Apple and Samsung are making money in the smartphone business with the former pocketing most of the profits. So the Surface Phone is sure eyeing a sizeable market pie to grab from the market leaders. Forbes said, the device will need to present "distinguishing features" in order to realize such an ambitious goal.

But the report did not specify how exactly the Surface Phone will successfully compete with the likes of Samsung Galaxy S8 and Apple iPhone 8. The device is rumored to boast of the monster next-generation chip from Qualcomm - the Snapdragon 835 SoC, which should be a good start.

However, it is the Surface Phone platform that is seen to make a difference with mobile device users looking for something distinct. If the speculations will prove correct, the device will debut next year in time for the global rollout of Windows 10 Redstone 3 update. The OS jump is said to showcase the powerful mobile computing capabilities of Windows 10 that likely is more optimized with the Surface Phone.

Specifically, what excites Microsoft fans is how optimal Continuum will be with the Surface Phone. The Windows 10 feature permits users to transform a mobile device into a desktop machine by simply connecting it to a monitor or television.

And all these promises are to materialize anytime in the last few months of 2017, tipped to be the scheduled release date for the Surface Phone and likely to debut with the Surface Pro 5 2-in-1 device.