A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. Reuters/Mike Segar

If reports are to be believed, the delay in the release date of Microsoft Surface Phone 2016 is due to Microsoft’s decision to include the much-talked about Intel Kaby Lake processors. The phone did not make an appearance at the IFA 2016 event in Berlin, Germany. Now, it is rumoured to be released in 2017.

There is a dearth of information from Microsoft. The company has not released any official statement regarding the Microsoft Surface Phone 2016 and why it has been delayed. However, as the Kaby Lake processor is expected to arrive by the end of 2016, the Surface Phone could well be made available by March 2017.

The Microsoft Surface Phone 2016 may be launched along with other highly-anticipated devices, the Microsoft Surface Pro 5 and Surface Book 2. The Surface Phone is expected to sport some pretty top-class specs and features. Tech enthusiasts believe that the phone will have a large display, huge storage space, big fat RAM and Carl Zeiss lens, reports Mobile & Apps.

With a 5.7-inch screen and AMOLED display panel, the Microsoft Surface Phone will reportedly be launched in three variants depending on storage capacity, RAM and processor.

The basic model will have a 3GB RAM and 32GB storage whereas another will come packed with 6GB RAM and 128GB internal storage. The third variant may have an 8GB RAM and 500GB internal storage.

The rumoured Carl Zeiss lens in the Microsoft Surface Phone 2016's 21MP rear camera and a front camera of 8MP will include a triple-LED flash. There is also a possibility of a USB Type-C port for rapid charging and super-fast data transfers.

The Microsoft Surface Phone 2016 is expected to run on Windows 10 codenamed Redstone 2. It will provide users with an amazing user interface. The base variant may be priced at US$700 (AU$916) whereas the premium variant could be purchased for US$1,099 (AU$1,440).