Microsoft's Lumia lineup could soon be cancelled if recent rumours are believed, especially with early speculations suggesting the Redmond giant is working on releasing a Surface Phone in three variants, with Windows 10 Mobile OS onboard.

The Surface range of products, which includes the Surface, Surface Pro and Surface Book devices, have achieved great success since they were introduced, so it is no surprise Microsoft is heavily pegged to be launching a Surface branded smartphone. Reportedly already in the works, the Surface Phone is expected to be announced early in 2017, and the three variants aimed towards general users, the prosumer and business, Windows Central reported.

The smartphones will be available at different price points, although all the three models are likely to carry support for the Microsoft Pen technology. Continuum will also be one of the major attractions of the upcoming Surface Phone smartphones.

The arrival of the Surface branded smartphones may result in the cancellation of the entire Lumia line of smartphones. Microsoft had inherited the Lumia branding for its smartphones after it acquired Nokia’s Devices and Services in 2013.

One of the probable reasons behind cancelling its Lumia line could be that the Redmond giant will no longer target the low-end and budget phone market so that other OEM brands like BLU and Alcatel can manufacturer such phones. The other reason could be that Microsoft wants to re-enter and disrupt the smartphone market with a stronger product.

Microsoft is expected to bring overhaul improvements to Windows 10 through the Redstone 2 that will be available to the users by Spring 2017. Rumours are rife that the Microsoft Surface Pro 5 and Surface Book 2 devices will arrive with Windows 10 Redstone 2 update in the next year, with the Surface Phone expected to be unveiled along with these devices.

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