Microsoft's Surface phone rumors indicate the phone may be facing an upgrade dubbed as "the ultimate mobile device" by CEO Satya Nadella. Microsoft will not be following today's market leaders, but will offer a unique device that caters to specific needs of customers.

Nadella recently addressed the Australian Financial Review to discuss the coming policies and approaches of Microsoft. If there is one thing the company has learned with their shaky entry into the smartphone market is that they will be employing a different strategy.

Nadella revealed a new company secret, which is to stop competing with smartphone market leaders and focus instead on coming up with innovative ideas. He also unveiled Microsoft's latest venture, which is to launch "the ultimate mobile device" as reported in Forbes.

Nadella did not disclose any other details of what an "ultimate" phone will feature, but he did mention that Microsoft will focus "on a specific set of customers who need a specific set of capabilities." Nadella's vague statements spark the latest Microsoft's Surface phone rumors that the company may be launching an upgraded Surface phone or overhaul a Nokia device.

Microsoft under previous administration has acquired Nokia for $7.6 billion dollars, prompting speculations that the newly acquired devices will debut carrying the Surface brand as reported in AFR. What specifications and features could make "the ultimate mobile device"?

The most likely scenario is for Microsoft to combine the best of its three best devices, namely, the Surface Pro 4, Surface Book, and the Surface Studio. Microsoft's "the ultimate mobile device" will most likely have the features of a tablet and an ultraportable PC.

It will have the highest specifications and focus more on business. Runs on Windows 10 packed with processor power, expandable memory and big storage capacity. Gadget reviewers say that Microsoft will need to disregard cost and come to terms with the fact that it will not sell millions of units.

For Microsoft's Surface phone rumors to be worth the attention is to ensure that the device showcases Microsoft's potential in the next five to ten years. "The ultimate mobile device" will most likely appear in the second half of 2017.