Even though there have been a lot of rumors about Microsoft working on a Surface Phone, Microsoft has never confirmed or hinted that the are working on one. However, there are now report suggesting that we might be seeing the Microsoft Surface Phone next year at the Mobile World Congress.
This came after it was reveal that Microsoft will be attention the MWC 2017. Since they are not a regular at MWC, a lot of people think that they will have something very interesting to offer next year and it might be the rumored Surface Phone.
We know that Microsoft has been working to bring the full Windows 10 support to devices running on Snapdragon which means phones with Snapdragon will be able to run full desktop apps on their device.
However, with so little detail to go on right now, it is best if you can take it with a pinch of salt for now.