According to Gallo, he said that Nokia’s strategy (which was sort of adopted by Microsoft when they acquired Nokia’s mobile division) of pushing out low-end smartphones was never going to make the company money. He also stated that the enterprise/business market is where Microsoft’s core strength lies, and that is where they expect to do well.
To that end, he teased that Microsoft was planning a high-end “category innovation” device. According to Gallo, “We’re really aligned to what we’ve done on the Windows desktop which is we’ll lead with some high end and category innovation like we’ve done with Surface, and OEMs will go and build the breadth of the catalog.”
Right now it has been speculated that Microsoft’s next smartphone could come in the form of the Surface Phone. However following Microsoft’s announcement that they would be exiting the consumer smartphone business, we have to wonder what is the fate of the device, or maybe for all we know, it was always aimed at the enterprise sector to start with.