Admitting that the company has been facing an unstable time, Sony Ericsson's president, Bert Nordberg, has announced that the new range of its phones would be focused on communication and entertainment, including Google's Android operating system.

The Android-based devices X10 Mini and X10 Mini Pro, are smaller than a credit card, and feature four hot corners so that users can hold the device in one hand while still accessing menus and key functions.

"There has been an enormous buzz around Xperia X10, so it is really exciting to be unveiling compact versions of this powerful proposition", said Rikko Sakaguchi, a senior Sony Ericsson Executive.

Sony Ericsson's failure in producing smartphones, featuring touchscreen technology, is one of biggest challenges Sony Ericsson is facing.

Another reason for the company's weak position is that it does not make handsets for the US market based on a wireless technology called CDMA, which is used by Verizon Wireless, the country's leading mobile operator.

Mr. Nordberg clarified that the company would not try to compete with Nokia, which is the world's largest mobile maker, by producing cheap handsets for emerging markets.

Sony Ericsson is looking forward to differentiate itself from others, by making better use of its relationship with Sony.

"If I was not confident we could make it profitable and prosper, I would not take the job", said Mr. Nordberg.