Microsfot Lumia 640 640XL XL-12

Microsoft is already testing its next-generation Lumia flagships with Qualcomm's latest Snapdragon 820 chipset, according to a new report. The company is also said to be developing its first Surface Phone, but it won't give up on its Lumia lineup for now.

Qualcomm recently released its Snapdragon 820 chips to manufacturers, reports Nokia Power User, and it is thought Microsoft is one of the partners that is already testing them in not one but two new Lumia smartphones that are expected to go on sale next year.

"Our sources tell us that Microsoft is already testing Lumia prototypes running Snapdragon 820 processor for 2016 Lumia Flagships," the report reads — but we will likely be waiting a while for them. "Don't expect these coming out before Q3 in 2016," adds Nokia Power User.

In the meantime, we could see the unveiling of Microsoft's first Surface Phone. According to a recent report, the device will adopt the high-end Surface design language, and could feature a 5.5-inch Quad HD display, a 21-megapixel rear-facing camera, and an Intel Atom processor.

Other specifications are said to include either 3GB or 4GB of RAM, up to 128GB of internal storage, a microSD card slot, USB-C and wireless charging, and a Surface Pen.

Unlike the Lumia lineup, which is aimed a consumers, the Surface Phone is expected to be aimed at business and enterprise customers, with the ability to run Win32 desktop apps for enhanced on-the-go computing with continuum.