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Sony Ericsson is slow in adapting to post-Iphone market, Sony Walkman lost the war to Ipod, and now they're just repeating the history. They do not know how to counter iphone, so they go for MS Windows Mobile (Xperia), Nokia Symbian S60 (Satio)and Android (X10) all at the same time. 

Im using Xperia which is a very beautiful Sony phone, but come with very unresponsive MS Windows Mobile, Sony should have invested everything in Android in the first place, and ignore the buggy Windows. Only Android hold a chance against iphone, though it would still be impossible to turn the tide. The hope for Sony Ericsson lies in X10 which is basically super sexy Sony hardware design coupled with Android.

MS should just scrap the whole Windows Mobile and write a new smaller OS if they even hope to retain in the market.