Microsoft's Corporate Vice President for Windows Kevin Gallo, gave some hints about the company's plans for the upcoming smartphone.

According to Gallo's statement, Microsoft is working to develop its future handset with the enterprise sector in mind, thus reinforcing the company's actions of drifting away from the consumer sector. The phone, which appeared in unofficial leaks and reports, will purportedly land under the name Surface Phone.

Recent reports indicate that the Windows Phone is on the verge of losing the little terrain it still has in the market.

Windows 10 Mobile scored far from its anticipated success, and the smartphone models Lumia 950 and Lumia 950 XL sold way under the estimated numbers. Experts from the field attribute the flop to an ill-advised selection of apps, which was paired with a clunky operating system.

During the last few years, these factors led to Microsoft axing a significant number of jobs in its phone department. The restructuring culminated with the Windows developing company selling the Nokia brand to HMD Global, a Finnish company.

With the turmoil in plain sight, many are wondering where Microsoft is heading with its smartphone business, or even if there is still one to talk about.

Taking advantage of a recent Build Tour, the Corporate VP of Windows confirmed that Microsoft is keen on holding on to Windows 10 Mobile.

The Register reports that Gallo is confident about Microsoft's smartphone future. The executive affirmed that his company is placing its bets on the enterprise sector when looking at its mobile OS. Gallo underlined that Microsoft's earlier strategy of developing a smartphone targeted at the affordable end of the spectrum was a failure, as the profits of the company soared.

Albeit it kept the lid on specific information about the upcoming phone, Gallo hinted that the Surface Phone will be destined to a specific market. He mentioned that the company took the excellent experience of the Windows 10 for desktops and drove it further.

"[W]e'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," Gallo says.

Only time will tell whether the Surface Phone will be delivered only with the business sector in focus or the consumer market will also get a piece of it.

Rumors surfaced about the device, touting that the upcoming handset from Microsoft will be a beastly production tool. The purported specs of the device show a Qualcomm Snapdragon 830 CPU backed by an 8 GB of RAM for processing power, as much as 128 GB of default storage. Continuum support is a self-understood part of the Surface Phone.