Satya Nadella (R), Microsoft Corp chief executive, greets Panos Panay, corporate vice president for Surface Computing at Microsoft Corp, during the unveil event of the new Microsoft Surface Pro 3 in New York May 20, 2014.
Satya Nadella (R), Microsoft Corp chief executive, greets Panos Panay, corporate vice president for Surface Computing at Microsoft Corp, during the unveil event of the new Microsoft Surface Pro 3 in New York May 20, 2014. Reuters/Brendan McDermid

Microsoft’s Surface Phone release date may be significantly impacted by the development of Intel's forthcoming Atom processor. The rumoured smartphone was expected to come packed with Intel’s Atom processor, which is said to be stalled now.

Following a restructuring its operations, last month, Intel announced to cut 12,000 jobs, which accounts for 11 percent of the workforce. An Intel spokesperson confirmed to PC World, that the chipmaker has cancelled the development of the Atom chips for mobile devices, condemned as Sofia and Broxton. Intel may also phase out its Atom X5 chip lineup for tablets.

As a result, Microsoft might have to look for an alternative mobile processor to power its supposedly high-end hardware specifications. According to WinBeta, a Windows-based phone must run legacy apps or apps useful to businesses, based on Win32 architecture.

Mobile processors like Snapdragon 808, running the Lumia 950, cannot run legacy apps. Thus, Microsoft needs to figure out another chipset, capable of running the Surface Phone to make it useful to businesses. Parallel reports indicate that the upcoming Snapdragon 830 SoC may power the Surface Phone.

Related: Surface Phone price, release date reports: Top variant estimated at US$1099, year 2017

The tech giant is said to unveil the Surface Phone in three different variants with multiple RAM configurations. The three models will be placed at different price points, enabling Microsoft to cater to a wider market.

The new Surface-branded smartphone lineup might also come with support for Microsoft Pen technology and Continuum. The device is expected to sport a 5.5-inch AMOLED display carrying a screen resolution of 1440 x 2560 pixels.

If rumours are to be believed, the Microsoft Surface Phone will be as powerful as a modern day PC. The Surface Phone will reportedly replace the current Lumia lineup and com with completely revamped specs and features. Prevailing speculations indicate that the purported device will not arrive before April 2017.

Microsoft is yet to announce the official Surface Phone release date.