Microsoft has yet to see success in the smartphone market, but it's not giving up. Rather, CEO Satya Nadella says the company's next handset could be the "ultimate mobile device." He made that statement during an interview with the Australian Financial Review. Nadella also stated Microsoft would "continue to be in the phone market."

With Android and iOS dominating the smartphone market, many have said Microsoft would be better off simply giving up on mobile devices. It appears determined not to go down that path.

Getting people to leave the top mobile operating systems for Windows Phone will be Microsoft's top challenge regardless of how impressive its upcoming phone is.