We have seen what Microsoft has to offer in their smartphone segment when they brought out the new Microsoft Lumia 950 not too long ago and while the smartphone itself was pretty solid, Microsoft might be planning something bigger for 2016.
With the success Microsoft has been having with the Surface tablet, it was speculated that their next move will be to shrink the Surface Pro 4 down to a smartphone.
WindowsCnetral reported that Microsoft currently has a team working on a new Surface Phone. They also added that the new smartphone could be coming in with an x86 chipset from Intel which means it will be powerful enough to run PC applications.
It is believed that we will be seeing this new and powerful Surface Phone next year. However, all these are just speculation right now as we have not heard from Microsoft yet so take it all with a pinch of salt.