The new handset will be developed by Panos Panay's team

Dec 2, 2015 01:15 GMT  ·  By

Microsoft has just released its first Windows 10 Mobile smartphones, the Lumia 950 and Lumia 950 XL, and is now gearing up for the official launch of the new mobile operating system.

Those who did not purchase either of the two Windows 10-powered smartphones and prefer to wait for the next flagship handsets launched by Microsoft will be disappointed to hear that they will have to wait quite a long time.

Some of you might remember our report from back this summer that claimed Microsoft was working on a metal-clad high-end smartphone powered by an Intel chipset, expected to be released in May 2016.

According to WindowsCentral, that Intel-powered smartphone has been canceled by Microsoft because apparently it was a carrier project from the old Nokia team.

Instead, the Redmond-based company has given to Panos Panay and his team the green light for the mythic Surface Phone.

Could this be a proper flagship smartphone for Microsoft?

Not much is known about Panay's Surface Phone, just that it will be launched sometime in the second half of 2016, which means it could be unveiled as early as August.

Another piece of information regarding the Surface Phone is that Intel is, once again, co-partner for this project and is testing “something” for this flagship smartphone.

Word is that Surface Phone might be equipped with a powerful Intel x86 chipset that should allow the device to run Win32 applications, a dream come true for Windows fans.

Since Panos Panay is head of premium devices, the Surface Phone will be an expensive smartphone, so don't expect this one to be in the same price range as the newly launched Lumia 950 phones.

Currently, Microsoft is testing different hardware configurations and various technologies for the Surface Phone, which is one of the reasons we've already seen a prototype unit at the company's facilities.

That's all we know about the new Surface Phone project led by Panos Panay, but we suspect more info will emerge next year as Microsoft gets closer to narrowing down the main specs for the phone.