Microsoft announced its budget-friendly Lumia 640 handset earlier this year. With a price of well under $150, the device already has LTE support and a host of decent specifications such as a 5-inch 720p display, 8MP camera, Snapdragon 400 processor, and Window Phone 8.1 OS.

A new report now suggests that the software giant is working on a follow up device called Lumia 550, codenamed "Saimaa." A German blog called WinFuture.de spotted a model believed to be the new Lumia 550 at a Swiss online retailer. The device has cropped up in a listing tagged with a CHF 114 price (about €104 or $117) and it could be one of Microsoft's first 5-series model to support LTE connectivity.

However, this is not the first time that information about the said handset has surfaced online. Back in May, two variants of a purported 4.7-inch Lumia device with model numbers RM-1127 and RM-1128 was uncovered in Zauba.com, a website that keeps track of some of India's imports and exports. One has a single SIM card slot and other has dual SIM support.

The new leak from the German site shows that the Lumia 550 will indeed pack a 4.7-inch display with 720p resolution. Under the hood, quad-core Snapdragon 210 chipset from Qualcomm is powering the device backed by 1GB RAM. It has 8GB of built-in memory and features a modest 5-megapixel main camera and a 1.2-megapixel front-facing shooter. While the battery capacity is not mentioned, it will be able to support high-speed data transfer thanks to its 4G LTE connectivity.

What is interesting about the handset's photography feature is that the front camera will reportedly be complemented with a LED flash. According to Windows Central, there will be a double LED flash on the upper right portion of the phone's front panel and the camera itself will be placed on the opposite side.

A price scheme of less than $120 is expected considering the abovementioned features. Furthermore, with those specifications, the Lumia 550 will most likely be aligned by Microsoft to rival Motorola's affordable Moto G and Moto E range.

It is possible that the rumored Windows 10-powered Lumia 550 will arrive alongside the flagships Lumia 950 and 950 XL during the company's big October 6 press event. However, Windows Central mentioned, citing sources familiar with Microsoft's plans, that the Lumia 550 will be shelved for a little longer and will ultimately be unveiled on "early 2016."