Microsoft Surface phones
Microsoft is said to be planning two Surface phones Microsoft

Microsoft is reportedly testing at least two prototypes of its Surface Phone. Qualcomm's new Snapdragon 835 processor, which comes with a 30% increase in area efficiency, 27% improvement in performance and consumes up to 40% less power, is likely to power the handsets.

According to the latest details shared by NokiaPowerUser, which claims to have got information about the prototype models, they support Quick charging 4.0. One of the Surface phones has 6GB of RAM and can run x86 apps in Continuum. In addition to that, the Windows 10 Mobile operating system running on the phones is 64-bit.

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The report further states the phones can't run x86 app by themselves, but they can be installed. It reiterates earlier reports suggesting the Surface phone may come with Surface laptop accessories. Besides, Microsoft is planning to make the 3-in-1 form factor a major highlight or USP of the Surface phone. The accessories could carry the "Surface brand".

The other model is expected to have 4GB RAM, but uses Snapdragon 835 processor. It runs the 64-bit Windows 10 Mobile version.

However, this suggests that out of the two models Microsoft could be planning one for the general consumer and the other for enterprises. Both phones are expected to have 5.5in QHD screen.
In terms of operating system, they would run Windows 10 Mobile Redstone 3 out of box. The company is likely to make an announcement about the phones in late 2017.