Microsoft Corporation (NASDAQ:MSFT) knows that their current line of Windows-based smartphones is failing to make sales in a market that’s dominated by Apple Inc. (NASDAQ:AAPL) and Google’s Inc (NASDAQ:GOOG) Android.  This failure won’t stop them from trying again.

It doesn’t seem that long ago that Microsoft officially announced their plans to release their first brand of tablet computers, and now there are reports that Windows has been currently working on a future smartphone that’s said to provide extra competition for Apple  Inc. (NASDAQ:AAPL) and Android.

Windows Surface Phone

BGR  reported the news which came from a trusted but anonymous source. Their source didn’t offer any more details as to what Microsoft Corporation (NASDAQ:MSFT) users can expect from the rumored handset, except that it’s currently in the final production stages. It should be available in the next few months.

China Times also published a similar story. According to their report, the new smartphone will be part of the Surface brand, and it should arrive sometime next year.

For those who want to buy or give a Microsoft Corporation (NASDAQ:MSFT) phone for the holidays, the Windows 8 phone will debut in stores sometime in November.

Since Microsoft Corporation (NASDAQ:MSFT) is already creating their own brand of tablet computers, it only makes since they want to add smartphones to the line. Since we don’t have any real solid details on the rumored device, it’s too early to tell if it will be a success or flop. It’s hard to imagine any smartphone outselling the Apple iPhone, but Samsung has earlier this year with their Galaxy S III.  And thanks to Apple  Inc. (NASDAQ:AAPL)’s recent gaffe with their poorly performing Maps feature, anything is possible. It’s easy to write off Microsoft’s rumored attempt as a future failure, but right now, it’s anyone’s game.

I personally would like to see the Surface Phone making it in the top five list of best-selling smartphones, but that’s a highly unlikely scenario.