Before Microsoft signed the dotted line on its acquisition of Nokia's Devices and Services division, the Redmond-based giant was rumored to be working on a Surface smartphone, or at least a prototype of one.
If the deal with Nokia didn't go through, they would've at least had a backup plan. There were also reports of Nokia working on an Android-based smartphone before they were acquired by Microsoft, so they had a backup plan, too. I don't think Microsoft should release a Surface smartphone until they know it is ready to kick some ass.
I would love to see a Surface smartphone for something like $299, competing with the Nexus range of smartphones from Google, and bashing the apples out of the iPhone 5C which was meant to be "cheap" but obviously Apple don't know what that means. Maybe they should look at the $300 billion+ missing from its value on the stock market and reevaluate its position on "cheap."