Sony Ericsson unveils first Android phone

By Tarmo Virki, European technology correspondent

HELSINKI (Reuters) - Sony Ericsson unveiled its flagship X10 mobile phone on Tuesday, its first to run on Google Inc's Android operating system, hoping the device will help reverse its loss of market share.

Android has gained impetus this year as handset vendors like Motorola Inc look for ways to beat Apple Inc's iPhone.

"Android's momentum continues apace with four of the top five vendors in the world having now announced an Android product and roadmap," said Shaun Collins, chief executive of British research firm CCS Insight.

Of top vendors only Nokia Oyj has not unveiled any Android plans.

Loss-making Sony Ericsson, the world's fourth largest handset maker, has suffered since 2008 from a lack of attractive high-end models in its offering, and saw overall third-quarter sales shrink 45 percent year-on-year.

"The X10 is a high-value smartphone that will help Sony Ericsson back on the road toward profitability," said analyst Neil Mawston from Strategy Analytics.

However the new phone will not go on sale until early next year. Analysts expect the company to report another deep loss in 2010, but its gross margin and market share are seen up.

The X10 will have a 4-inch-wide touch screen, will use Qualcomm Inc's Snapdragon processor and will come with an 8.1 megapixel camera. It will go on sale in selected markets at the start of 2010.