Two years ago Palm released their first Windows Mobile Treo smartphone, making a surprising departure from Palm OS. The wisdom of the decision has been widely debated. Palm could have focused all of their resources on developing a superb proprietary operating system. Instead they divided their focus by adopting a highly commercially appealing second one licensed by many of their competitors.

Did Palm lose its uniqueness as a result of the decision? Or was Palm wise to pursue the enterprise market largely focused on device compatibility with Microsoft's server software?

Initially strong device sales bode well for Palm's decision. The company gained smartphone market share from RIM. But Palm subsequently fell behind in the feature convergence race, and lost market share. Palm reported lower revenue last quarter, and announced layoffs and the closing of their retail stores. Roughly half of the company's smartphone sales are Windows Mobile.

We believe the jury is out on the wisdom of Palm's decision. So we were surprised to learn one of the largest mobile phone manufacturers in the world is following suit. Sony Ericsson is abandoning their proprietary Symbian operating system for their upcoming flagship device. The Experia (aka "X1"), expected for commercial release in the second half of this year, will run Microsoft's Windows Mobile.

Hundreds of reporters gathered at a private party after Mobile World Congress in Spain to cover Sony Ericsson's announcement. We crashed the event so that we could report on it here.

Like Palm, Sony Ericsson is adding their own enhancements to Microsoft's Windows Mobile. The X1 interface features 9 Today Screens, which can be viewed side by side or individually blown up to full screen via a tap. This represents a unique approach to navigating the operating system.

The X1 will ship with 600 megabytes of memory, a 3.2 megapixel camera, aGPS, WiFi, large high resolution screen, slide out qwerty keyboard and, according to a reliable source shown in our video but subsequently denied by Sony Ericsson, tactile response to finger presses of on-screen keys.

(N.B. While these specifications may sound impressive, Sony Ericsson was completely unwilling to allow media to handle prototypes. The announcement may be a "spoiler" of competitor sales prior to Sony Ericsson's actually being able to manufacturer these specifications. Palm has strongly hinted on investor relations conference calls that GPS and Wifi among other new features will be available on their Windows Mobile smartphones this year.)

Microsoft projects shipments of Windows Mobile enabled devices will increase from 11 million units to 20 million this year. Including Sony Ericsson, Microsoft licenses Windows Mobile to four out of the five largest mobile phone manufacturers in the world, with Nokia being the remaining holdout.

For more information about this surprising move, check out our exclusive videos and Sony Ericsson's press release below.

Press Release

Barcelona, Spain – 10th February 2008 –Today marked the launch of XPERIA and a new era in mobile communications with the announcement of the XPERIA X1, a stand-out, arc slider phone from Sony Ericsson designed to address the growing need for a premium, converged mobile experience.

The XPERIATM X1 combines a 3-inch clear wide VGA display and a full QWERTY keyboard within a quality metal-finish body. With Windows Mobile inside, the XPERIA X1 lets you choose from a dynamic range of activities at anytime and anywhere; from enjoying your favourite entertainment content to working efficiently on-the-move. Access a world of experiences simply by touching the XPERIA panel on the screen.

“XPERIA represents the first brand that is truly borne from within Sony Ericsson. It represents our vision for a premium, energised communication experience,” said Dee Dutta, Head of Marketing, Sony Ericsson. “This launch, and the announcement of the X1, further strengthens the overall Sony Ericsson brand and places us at the forefront of mobile convergence.”

“Our vision for the XPERIA X1 is to deliver a seamless blend of mobile Web communication and multimedia entertainment within a distinctive design,” said Rikko Sakaguchi, Head of Portfolio and Propositions, Sony Ericsson. “XPERIA is our promise to think foremost of user experience and to deliver the premium experience – anytime, anywhere, anything, with anyone.”

Sony Ericsson XPERIATM X1 – energised communication, the premium experience.

• Convergence of multimedia entertainment and mobile Web communication
• Unique arc slider with wide pitch easy-to-use QWERTY keyboard
• XPERIA™ panels - arrange as you want for easy access
• Enjoy multimedia entertainment on bright wide VGA display
• Windows Mobile® capabilities

XPERIA panel interface – experiences just the way you want them

Enjoy access to different experiences – Web, multimedia, applications – from your desktop. Navigate with the tip of your finger. Configure and have your XPERIA panels just the way you want them.

Multiple navigation – the choice is yours

XPERIA X1 lets you interact with your phone in different ways. Touch, full QWERTY keyboard, 4-way key and optical joystick navigation. Switch seamlessly between operation modes.

Arc slider design – makes it stand out

The arc design gives a distinct and unique feel. Slide the screen upwards to reveal the wide pitch QWERTY keyboard. Ample distance between keys makes writing fast and easy.

Ultimate mobile experience – performance on the move

With Windows Mobile®, the highest data transfer rate (HSDPA/HSUPA) and WiFi support, you can enjoy your favourite entertainment and work efficiently on the move. Mobile access to everything that is important to you. aGPS gives you the freedom to explore the world. XPERIA X1 is a premium mobile experience.

The Sony Ericsson XPERIA X1 will be available in selected markets from the second half of 2008.

Related Links

Full press release on SonyEricsson.com

Direct Link to SonyEricsson X1 video on YouTube

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