The Redmond, Wash., software and tech giant is pushing back into the smartphone market with the release of Surface Duo at a $1,399 starting price point.
Foldable phones could be the next big wave in the mobile industry with Samsung prepping the Galaxy Fold 2, which costs about $2,000.
"It’s probably one of the sexiest devices we’ve ever built. It does things that single-screen devices can’t do, period," Windows and devices chief Panos Panay said of the Surface Duo, according to the Verge.
The displays on the two sides of the foldable phone are designed to mimic the interconnectivity of multiple monitors on a Windows PC.
The two screens will be powered by separate batteries.
Microsoft shares at last check rose 2.8% to near $209.
Last month, the tech giant reported earnings of $1.46 a share on a 13% increase in revenue to $38 billion. Analysts were expecting the company to report earnings of $1.37 a share on revenue of $36.5 billion.
"We are the only company with an integrated, modern technology stack - powered by cloud and AI and underpinned by security and compliance - to help every organization transform and reimagine how they meet customer needs," Chief Executive Satya Nadella said.
Microsoft stock hit all-time highs earlier this month as it pushed past a market capitalization of $1.6 trillion.
The stock has risen more than 34% so far this year.