Microsoft made big changes in its phone strategy by restricting the quantity of phones they produce and concentrating on quality in three segments; budget, business and flagship. Judging by the recent Q4 earnings report the change was a smart move with revenue falling even though the company sold 10 percent more Lumia smartphones in the quarter. At that earnings call Satya Nadella admitted that new flagships were a segment where Microsoft needed to improve:
I believe our participation in the phone segment by itself, so Windows phones and Lumia phones being there is important and that’s why we picked the three areas where we have differentiation and we’re going to focus on it. We’re going to have great flagship phones for Windows fans. That’s actually a segment we don’t today have good devices and we hope to change that with Windows 10.
With loyal customers eager to get their hands on new hardware, rumors of new flagships have surfaced recently. The phones are believed to be available in the Fall and have code names of Cityman and Talkman. Stay tuned to WinBeta for the latest on these upcoming devices.