Microsoft is reportedly due to release a “selfie phone” soon with a high-powered front-facing camera.
The device, codenamed Superman, will be the first Nokia-branded phone with its main camera on the front.
Microsoft recently bought the Finnish firm’s mobile division, and is planning its latest device launches.
Details of the planned Windows 8.1 releases were reported by technology website The Verge.
It said that the Superman device – with a five-megapixel foward-facing camera and a 4.7-inch screen – was revealed at an internal company meeting this week.
Tech blogs says the camera’s position suggests it is optimised for self-shot photographs – known as selfies.
It is due to be released in August, according to the report.
There is a second handset planned, the site says, known as Tesla.
It is believed to be an affordable “high-end” phone which will replace the Lumia 720 model.
The demonstration of the phones to staff appears to suggest that the phones are close to release.