[EnderMB]

I wouldn't call the high-end Android market saturated. There are a number of players, but it's a market of compromises. If you want a stock Android experience, you go away from Samsung. If you want a headphone jack, you go away from Google and OnePlus, etc.

The Surface range is good because it packs so much functionality into a nicely designed package. The same design principles, with a full feature set, would sell like wild-fire, and would put a lot of other phone manufacturers on notice.

[WorldMaker]

The high-end Android market is about as saturated as it can get, because multiple generations of hardware sales keep showing new high-end options dropping out because high-end users (mostly) just want iOS and buy iPhones.

Most high-end phones for Android don't sell like wild fire. AT&T and Verizon stores (among others) are pretty clear that Android is "cheap" and the iPhone is luxury/high-end.

I don't think Microsoft has an answer for that existing market dynamic here for Android phones. There doesn't seem to be enough of a value proposition that Microsoft might have anymore luck as Android device competing against the iPhone.