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    MWC 2008: Sony Ericsson to launch Windows Mobile handset

Now just Nokia resists Microsoft's cellular charms.

By Stephen Pritchard in Barcelona, 10 Feb 2008 at 21:59

Sony Ericsson has become the latest mobile phone maker to offer Windows Mobile devices.

The move, announced on the eve of the Mobile World Congress (MWC) in Barcelona, leaves Nokia as the only major manufacturer not offering Windows Mobile phones.

Sony Ericsson's Xperia X1 phone is an "arc slider" handset with a large, 3-inch VGA screen and a QWERTY keyboard. The manufacturer describes it as a premium handset, and it will feature HSDPA/HSUPA high-speed data connections, wireless LAN and assisted GPS, for navigation.

However, it was unclear whether the new phone will be positioned at business users - which would pitch it directly against devices such as Motorola's Q or Samsung's BlackJack - or at consumers. The BlackJack and Q also have full keyboards and run Windows Mobile, but SonyEricsson's launch publicity instead emphasised the X1's multimedia capabilities, suggesting the manufacturer plans to position it as a cross-over device.

SonyEricsson is positioning Xperia as a new brand for the company, alongside its existing Walkman and Cyber-Shot lines.

However, the manufacturer did not say future Xperia handsets would run Windows Mobile, or instead use UIQ, its Symbian-based operating system. SonyEricsson continues to develop Symbian handsets and its MWC announcements also included two Symbian-based touch-screen phones, the G700 and G900. However, these do not carry the Xperia branding.

"All the top five handset makers, aside from Nokia, are now shipping phones with Windows Mobile," said Scott Horne, general manager of Microsoft's Windows Mobile division. "What we are seeing is a shift in the wind: we are excited by this because Sony Ericsson is considered a consumer phone powerhouse, and have done great things with their Walkman and Cyber-Shot brands."

The deal is bound to be viewed as a boost to the Windows Mobile camp: Windows Mobile has performed better in the business and prosumer segments, not least because manufacturers have tended to focus their Windows Mobile efforts on high-end or messaging-centric devices, rather than camera or music phones.

"This deal fits into the higher-tier handset space in Western Europe, and it might also help Sony Ericsson in North America where Microsoft has a very strong brand," said Carolina Milanese, research vice president at industry analyst Gartner.

"It gives Sony Ericsson an extra weapon on top of UIQ for the smart phone battle, and allows Microsoft to make a more significant entry into the consumer space." But she added that Sony Ericsson is unlikely to abandon either UIQ or Symbian development.

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