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Microsoft won't make its own car – and maybe not even a Surface Phone

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Satya Nadella

With Microsoft gearing up for its big hardware event this week, where it's expected to show off new Surface devices, some have speculated that we could see a new Surface phone debuted.

But CEO of the firm, Satya Nadella, has put an end to such rumours, saying his company has missed the opportunity to make an impact in the smartphone market.

Speaking Monday at the opening dinner for the WSJD Live conference (via Mashable), Nadella said: "We clearly missed the mobile phone, there's no question. Our goal now is to make sure we grow new categories."

All of which doesn't bode well for a new Surface Phone come Wednesday, when the company is expected to introduce a new Surface tablet alongside a possible Surface-branded All-In-One PC.

Despite the fact that it's unlikely we'll see a new phone from Microsoft soon, the company isn't completely out of the smartphone market, according to Nadella.

He added: "We have devices which are phones today but the place where we are focused on, given where the market is, is what is the unique thing that our phone can do.

"We have a phone that in fact can replace your PC, the same way we have a tablet that can replace your laptop. Those are the categories that we want to go create."

It seems, then, that Microsoft still has ambitions when it comes to creating smartphones, or at least the software the devices run on.

In the mean time, the company will be focusing on new technologies such as augmented and virtual reality, with Nadella touting the upcoming HoloLens as an "ultimate computer" based on mixed reality.

Related: What is HoloLens?

And if you thought the firm might follow Google and Apple and turn its attention to creating an autonomous vehicle, you might be surprised to learn that Nadella isn't all that keen on the idea of a Microsoft car.

Speaking at the live conference, the CEO said Microsoft would be focusing on its software efforts when it comes to self-driving technology, mentioning "image recognition" and "the cloud infrastructure" as services the company can provide to its car-manufacturer partners.

It seems the company will be continuing to work on providing its Azure cloud computing platform to manufacturers for the time being then, with Nadella saying "quite honestly, that's our strategy, whether it's BMW, or Ford, or Toyota, they are significant customers of ours."

So, no car and no phone for the time being, then. But we're sure Microsoft will have some tricks up its sleeve for the Surface event tomorrow, which kicks off at 10am ET, 3PM BST.

WATCH: Microsoft Surface Book review

Let us know if you still want to see a Surface phone in the comments.

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