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Microsoft planning to drop the Lumia smartphones in favor of upcoming Surface Phone

| Sep 13, 2016 07:06 AM EDT

Microsoft CEO Steve Ballmer holds a Nokia Lumia 920 smartphone during a Windows Phone 8 launch event at Bill Graham Civic Auditorium on October 29, 2012 in San Francisco, California.

Microsoft is will reportedly hold an event in October to unveil a Surface all-in-one alongside the much-rumored Surface Phone, or the phone will be revealed at a different event in 2017. Reports have surfaced claiming that the company is gearing up to end sales for its Lumia devices by the end of the year.

An anonymous tipster predicted that the tech giant is planning to ditch the Lumia range because there are only four Lumia models left on the market, with no more forthcoming. Furthermore, reports are rife that retailers have been offering discounts and removing the phones from in-store prominence. The company has even removed the link to buy Lumia devices from its United States website, and dialed back their presence in other regions.

Lumia brand will be totally removed from sale by the end of this year, rather than just have production stopped, according to WinBeta. The move is believed to create room for the rumored Surface Phone, an idea supported by two tweets sent posted on Wednesday Sept. 7 by one of Microsoft's engineering directors, Laura Butler. However, the tweets have ever since been deleted.

Microsoft seems to be closing the book on its experience with Nokia and laying off thousands of employees it acquired during its ill-triggered takeover of the Finish Corporation. However, it will be surprising if the tech giant steps out of the smartphone industry forever, especially since it does still appear to be enthusiastic with its other Surface products.

The last remaining Nokia vestiges at Microsoft are being closed down as the firm seeks to streamline its smartphone hardware venture. About 1850 employees will lose their jobs - 1350 in Finland and 500 elsewhere - as the company essentially exits the phone market.

In a statement via Microsoft official website, CEO Satya Nadella said, "We are focusing our phone efforts where we have differentiation-with enterprises that value security, manageability, and our Continuum capability, and consumers who value the same."       

Nadella's statement indicates that Microsoft will still work in the phone space, but in a much narrower way. Here is footage for further information:

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