Some of the most interesting news to have emerged from the Windows camp recently involves the reported cancellation of the Intel-powered Windows 10 phone, which was supposed to hit the market in May 2016. The rumor is that this will be replaced by a flagship phone under Microsoft's Surface brand, HNGN previously reported.

The story emerged after Panos Panay erstwhile Surface VP was promoted to lead engineering on all premium Microsoft hardware, which includes Lumia, Xbox, Band, HoloLens and Surface, Windows 10 Update reported. Whether this move entails the end of the Lumia line still remains to be seen. However, the cancelled Intel-powered, metal-clad Windows 10  phone is said to be a Nokia carryover, hence, the emergence of a Surface phone could introduce a new beginning for Microsoft's mobile devices.

New sources seem to corroborate the Surface phone rumor. For instance, there is claim that Panay's team is now busy testing different processors for the upcoming device, including Intel and Qualcomm chips, according to Vine Report. The test is allegedly being conducted at Redmond's Building 87, highlighting rumors that Satya Nadella has already moved the responsibility of developing the company's mobile flagship to the Surface team, Tech Times reported. 

There is still no concrete information regarding the Surface Phone. However, Panay's prominent role indicates a premium device. By distancing itself from the Lumia brand, consumers can also expect a different design language than what has been demonstrated in previous Windows phone devices.