Panos Panay states this is very far from the truth.
http://www.businessinsider.com/microsoft-panos-panay-not-killing-surface-2017-10
I'm quite surprised that one analyst got Microsoft's business so wrong, remind me not to put any stock into any of his future analysis' on any other company.
Although just to play devil's advocate and keep the conversation going, Microsoft did kill it's own smartphone business. But they had a much larger loss with their purchase of Nokia, so it may have been something they felt their shareholders could never get past, or that they couldn't climb out of the hole. Still losing the mobile market is a dangerous move, even though they have most of their services available on other OS' it still doesn't mean that Apple or Android couldn't or wouldn't replace those services with their own. If anything that's exactly what is happening, ie Google search, Google assistant, Siri, Gdrive, iCloud, photos, messaging, facetime/Allo/Duo, etc etc. Without it's own vehicle to disseminate those products in the smartphone space MS is taking some risks IMO.