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Microsoft Surface Phone release date, specs rumors: 5.7-inch device to come with Snapdragon 835 and Surface Pen?

A Microsoft representative shows a Windows smartphone with Windows 10 operating system. The company is said to be developing the Surface Phone that will come with full Windows 10 functionality. | Reuters/Morris Mac Matzen

Microsoft might finally become a worthy competitor in the smartphone industry with the release of the Surface Phone. Based on the latest reports about the upcoming device, Microsoft is developing a monster device that will be able to go head-to-head with Apple's iPhones and Samsung's Galaxy smartphones.

While Microsoft has yet to officially confirm the Surface Phone, CEO Satya Nadella did tell The Australian Financial Review in November that they were building the "ultimate mobile device."

"We will continue to be in the phone market not as defined by today's market leaders, but what it is that we can uniquely do in what is the most ultimate mobile device," he said.

Microsoft also recently announced its partnership with Qualcomm which could mean that the Surface Phone will be powered by the Snapdragon 835 processor.

The next-generation Snapdragon chipset is built using the 10 nm FinFET process that translates to 27 percent higher performance and up to 40 percent lower power consumption compared to its predecessor. Furthermore, the use of the ARM-based chip will also result in the smartphone gaining full Windows 10 functionality.

According to reports, the Surface Phone could feature 5.7-inch display. There may be three variants that vary in terms of random access memory (RAM) and internal storage: one with 3 GB RAM and 32 GB of built-in memory, a model with 6 GB RAM and 128 GB storage, and the 8 GB RAM and 500 GB memory version.

Rumors also suggest that Microsoft's upcoming smartphone will come with a Surface Pen just like the other devices in the company's Surface brand. Many say that the Surface Phone will fill the void that was left after Samsung halted production of the volatile Galaxy Note 7 phablet.

Since Microsoft has not officially announced the Surface Phone, information about its specs should be taken with a grain of salt.

The Microsoft Surface Phone is rumored to arrive in the first half of 2017.