Update 1 (7/7/2020 @ 4:14 PM ET): Microsoft has reached out to clarify that the company has not acquired Movial, but rather has hired key employees to boost its efforts in Windows and Android development. The full statement can be found below. The original article, as published earlier today at 09:19 AM ET, remains as follows.

At the Microsoft Surface event in October last year, Microsoft first showcased its dual-screen Android device — the Microsoft Surface Duo. The device is expected to launch later this summer and, so far, we've learned a little about its software and hardware specifications. While Microsoft has still not announced a launch date for its foldable Android device, a recent report from WindowsCentral suggests that the company has already started work on the next-gen model.

The report primarily talks about Microsoft's recent acquisition of Movial — a software, services, and design engineering company that was working on the software experience for Microsoft's first foldable Android device. As part of the acquisition, Microsoft has taken hold of Movial's local operations in Romania, Taiwan, and the USA, and is bringing on board all Movial employees who worked on the Surface Duo as full-time employees at Microsoft.

However, Movial will continue to operate as a standalone company, with employees at its headquarters in Finland remaining at Movial. A report from SeeNews adds that Movial's Iași office will become Microsoft Romania's fourth research and development center, and the company will onboard 60 Movial employees from that location.

With the acquisition, Microsoft aims to bring the OS development for the Surface Duo in-house and provide timely updates following the launch of the device. The report further adds that the same team will also handle the Android OS work for the Surface Duo V2, which, according to unnamed sources, is already in the early stages of development. However, the report reveals no further information about the second-gen foldable device.

For the unaware, the Surface Duo is expected to launch with the Qualcomm Snapdragon 855 chip, coupled with 6GB of RAM, and up to 256GB of storage. Leaks suggest that the device will feature an 11MP camera with two 5.6-inch AMOLED displays. We also have reason to believe that the Surface Duo won't include 5G support, wireless charging, or NFC capabilities. While we've not heard anything from Microsoft regarding the pricing, the device will most likely fall in the premium smartphone segment.

Update: Microsoft Statement

A Microsoft spokesperson reached out to us to offer the following statement regarding this news: “Microsoft recently completed an agreement with Movial to hire employees across several offices as part of the company’s efforts to boost Windows and Android development efforts.” Thus, the company is confirming they've acquired talent from Movial, but they have not actually acquired the entire company.