Microsoft is expected to launch a Surface Phone next year. But the big reveal will reportedly be later than the upcoming Mobile World Congress (MWC), which will be held from Feb. 27 to March 2.

Reports say that Microsoft will be using the event to promote the Micrsoft Surface Phone, and build up the market's excitement for the device. Microsoft 10 will be the primary focus of the company at the said event. The operating system (OS) will receive a massive upgrade in the second half of 2017, with an update called Redstone 3. The upgraded performance of the OS will eventually be paired with new hardware that can effectively support the latest upgrade.

A report from Forbes suggests that the newest OS update could be the heart of the Surface Phone 2017. Although little is known about the device, the report believes that Microsoft will be unveiling a premium smartphone, one which rivals the Microsoft Surface Pro 4 and the Surface Book. If the device does contain the Windows 10 mobile upgrade, the handheld device could potentially run desktop-bound Windows 10 applications.

Rumor has it that Microsoft will be launching three price variants for the Surface Phone 2017. Reports say that the company will be launching a consumer model, a business model, and an enthusiast model, which is specifically designed for tech junkies. Although this hasn't been confirmed, one variant for the Surface Phone is expected to have a 512 GB internal memory with 8 GB of RAM, and a variant with 256 GB internal memory and 6 GB RAM. Another variant will reportedly have 128 GB of internal storage and 4 GB of RAM.

This premium smartphone will be powered by an Intel Kaby Lake chipset. And it will feature a 20-megapixel rear camera with Carl Zeiss lens. A Surface Pen is also expected to come with the device. If the rumors are true, Microsoft will be competing with the top-tier smartphone providers such as Samsung and Apple.

CEO Satya Nadella has previously teased that the company is developing an ultimate mobile device. So far, the tech giant has yet to comment on the speculations, and announce the details of the smartphone.