The Surface range is good because it packs so much functionality into a nicely designed package. The same design principles, with a full feature set, would sell like wild-fire, and would put a lot of other phone manufacturers on notice.
Most high-end phones for Android don't sell like wild fire. AT&T and Verizon stores (among others) are pretty clear that Android is "cheap" and the iPhone is luxury/high-end.
I don't think Microsoft has an answer for that existing market dynamic here for Android phones. There doesn't seem to be enough of a value proposition that Microsoft might have anymore luck as Android device competing against the iPhone.