UPDATE: With all the uncomfirmed leaks of the upcoming Surface phone and the phasing out of the Lumia, it was unclear whether Microsoft was still in the mobile phone game.
Well, CEO Satya Nadella pretty much confirmed Microsoft wasn't going to leave that space as yet. In a recent interview, he said that the company didn't want to just "be driven by just envy of what others have" and confirmed Microsoft would continue to be in the phone market.
What he said Microsoft would be able to uniquely do was what he termed "the most ultimate mobile device".
Big words, but with how impressive the latest Surface Studio has proved, the Surface Phone might just be the phone that makes Windows 10 on the phone seem like a great proposition. 2017 looks like an exciting prospect
Windows Mobile to live on in other phones
Expect not to see anymore Lumia phones by next year as word is that Microsoft is phasing out the phones by end of the year.
Microsoft isn't attempting to kill off Windows 10 Mobile: it's just that the focus will be on business and enterprise, not so much consumers. The latter has just proven to be too few when compared to the masses on Android and iOS.
With the upcoming HP Elite x3 and Surface Phone, Microsoft will still have a presence on the phone but it will most likely try to recapture the space BlackBerry once owned: business users.
Current users, especially those with flagships, can still expect support for some time and won't just be abandoned. But it makes sense for Microsoft to change tack and try and start over with the Surface phone.
If Microsoft does manage to build a solid user base for the Surface Phone, then that could be the platform for it to move to a larger audience, much the way BlackBerry became popular among the non-business set. The question is whether Microsoft has that killer function that will keep users tied to their Surface phones.
In the meantime, it's a good time to buy a Lumia if you've been wanting one as a spare or a gift to someone who needs a functional phone minus all the iOS and Android bells and whistles.