Nobody really knows what is going on with the Surface Phone. Microsoft never really did mention that they were working on a new Surface Phone but they did say that if they do come out with a new smartphone, it will be a game changing as the Surface tablet.
Despite so little detail about the Surface Phone, the fans still seem to think that the Surface Phone is going to happen. The device in the image here was found on Baidu and was posted by user Nokibar.
According to Nokibar, the device in the image is the upcoming Surface Phone from Microsoft. If this is real, it looks like the Surface Phone is going to look way different compared to the other Surface devices. It was also reported that Microsoft will be offering the Surface Phone with three spec options. The lowest spec model will come with 3GB RAM and 32GB of internal storage. There is also a 6GB RAM model with 128GB of internal storage and an 8GB RAM model with 500GB of internal storage.
Of course, all of these are just rumors so take it with a pinch of salt.