Microsoft is expected to enter the smartphone race this year with its Surface Phone 2016 device and bring a tough fight against the other manufacturers. The device is rumored to consist of exceptional specs and will be mostly flaunted as the higher-end device. It is expected to be made available in three variants with different functionalities and features.

The Bit Bag reported that one of the variants of the Microsoft Surface phone will feature Intel Atom X3 Processor and 6GB RAM. Reports claimed that this variant will be a mid-range device as compared to the other two variants.

Furthermore, another variant of the Surface phone is expected to consist of a Qualcomm Snapdragon 821 processor with 4GB of RAM. It is also rumored to sport the latest Windows 10 mobile platform. All the variants will also feature USB Type-C port for faster data transfers. It is expected to consist of liquid cooling technology for better device performance.

Meanwhile, the Twitter account of Microsoft's Indian developer Shubhan Chemburkar teased the pictures of the Surface phones to be released by the end of the year. The rumors hinted that the phone will sport aluminum and magnesium casing along with a 5.5-inch AMOLED display.

Reports suggested that the Microsoft Surface Pen variants will also consist of a 20-megapixel rear camera. It is rumored that the device will include a Surface Pen functionality along with the expandable micro SD memory slot, reported Technology News Extra.

The Microsoft Surface phone is expected to be priced for $699 to $1099, depending on the variants and their specifications, all to be released at the company's event in October.

There are reports that Microsoft will also launch other devices such as the Surface Pro 5, the Surface All-In-One Computer, the Surface Book 2, and the Surface Phone this year.