If Surface Phone looks like THIS, Microsoft has a sure-fire hit on its hands

Microsoft is purportedly developing a next-generation smartphone, dubbed Surface Phone.

Rumours of the flagship phone have circulated online for years, with the project now believed to be under the supervision of Surface Vice President Panos Panay.

Industry sources claim Intel is heavily involved in the smartphone project.

The hugely successful chipmaker could help the Surface smartphone realise its plans to bridge the gap between a smartphone and a productive mobile device.

Microsoft has never formally acknowledged the existence of a Surface Phone, although it has made several hints.

CEO Satya Nadella revealed in an interview last year that Microsoft’s next attempt at developing a smartphone would be the “ultimate mobile device”.

Designer Casmir Valeri has taken this idea – and run with it.

The designer has created a swathe of new concept images around the long-rumoured Surface Phone. And it looks absolutely awesome.

The digital renderings focus heavily on productivity, with the Surface Phone able to function as a multi-touch trackpad for a nearby Windows 10 desktop or laptop.

Valeri has also created a cover for the Surface Phone that doubles battery life and includes an additional USB-C port, similar to the Kindle Oasis.

“Powered by Continuum, Surface Phone is able to transition to a full-fledged desktop PC when equipped with a monitor and keyboard, keeping your files and programs onto one single device,” Valeri theorises.

It’s certainly an interesting idea – and leverages a number of the strengths of the unified Windows 10 operating system.

Microsoft holds its annual developer conference, Microsoft Build, next week.

“Microsoft is going to tease the future of the Windows UI next week at Build,” he tweeted.

One of the Microsoft Build sessions, entitled What’s New in the Microsoft Design Language, does not reveal what will feature in the session, teasing instead that the contents will only be “announced after the Keynote on May 11”.

That seems like a pretty strong hint Microsoft will take the wraps off its new design during the main Keynote presentation.