Microsoft Corp will stop designing and manufacturing mobile phones, Euronews reported citing Finnish Helsingin Sanomat newspaper.
Microsoft Finland's spokesman declined to comment on the report which said the company had invited its Finland-based phone developers to a meeting in Espoo on Wednesday.
The U.S. company entered the phone business in 2014 by buying Finnish company Nokia's once-dominant handset unit for approximately USD 7.2 billion.
It failed to turn the business around and took a USD 7.5 billion reduction last year.
This month Microsoft announced a sale of its entry-level feature phones business for USD 350 million, but said it would continue to develop its Lumia smartphones.