A view of the Hewlett Packard headquarters in Palo Alto, California November 23, 2009.
[Representational Image] HP tipped to launch new Windows 10 handset with Microsoft Lumia phone features. In Picture: Hewlett Packard headquarters in Palo Alto, California November 23, 2009.REUTERS/ROBERT GALBRAITH

Popular PC-maker HP is working on a new Windows-powered flagship phone to be launched in early 2017. It is interesting to note that software major Microsoft will also be closely involved in the making of the new HP handset.

HP's first smartphone Elite x3, despite boasting top-of-the-line hardware failed to find traction among consumers and the delaying of the device roll-out to the markets, especially in the United States and Europe, further hampered the sales.

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To make things worse, HP Elite x3 was hit with a bug causing random shutdown of camera leaving owners furious. Thankfully, it was resolved after the release of the Windows 10 Mobile anniversary update.

Now, Microsoft, in a bid to thwart any missteps in the making of HP's new phone, has offered to allocate monetary funds and also technology such as glance screen, ClearBlack display, double tap to wake, and advanced camera functionality, which was used for building its former Nokia Lumia-branded phones, to the HP's new phone, Dr Windows blog reported citing two reliable sources.

If all things go as planned, HP's new Windows phone is expected to get unveiled at MWC (Mobile World Congress) 2017, Barcelona (February 27-March 2), in the very same venue, where HP Elite x3 made its debut this year.

Besides collaborating with HP, Microsoft is also working on its own solo project on Surface phone, which is also rumoured to break covers in late February 2017.

Read more: Microsoft Surface phone images leak; when will Windows 10 mobile flagship be unveiled?

It remains to be seen how the things will pan out for Microsoft and HP next year considering the fact that former Windows phone-maker Nokia to confirmed to participate in MWC 2017 and likely to announce new Android-powered flagship phones.

Read more: Nokia confirms participation in MWC 2017; Finnish company poised to return with a bang

Watch this space for more updates.