For the first time in its history, Sony Ericcson unveiled a smart phone powered by Microsoft’s Windows Mobile.

Called Sony Ericsson Xperia X1 the mobile phone is seen as a potential iPhone killer, due to its 3 inch touch screen.

Unlike iPhone, Xperia X1 includes also a full QWERTY keyboard within a quality metal-finish body and it offers also a stylus and a 3.2 megapixel camera with auto-focus.

Xperia X1, which represents the first brand that is truly borne from within Sony Ericsson, as Dee Dutta, Head of Marketing, Sony Ericsson said, is powered by Windows Mobile 6, the latest OS for smart phones released by the Redmond company.

For Microsoft, the alliance with the fourth largest handset maker is a real step forward in promoting its Windows Mobile in a market dominated by Symbian.

The phone has quad-band GSM (850/900/1800/1900MHz) and 4 bands of HSDPA/HSUPA (850/1700/1900/2100MHz or 900/1700/1900/2100MHz) support. It includes also WiFi connectivity. Xperia X1 measures 110mm x 53mm x 17mm (4.3" x 2.1" x .7") and weighs in at 145g (5.1oz) and it includes also GPS support.

Unveiled at the last year’s 3GSM World Congress Windows Mobile 6.0 was meant to be similar to Windows Vista and there are three editions available: Windows Mobile 6 Standard, Windows Mobile 6 Professional and Windows Mobile 6 Classic.

Though, Microsoft has managed to sell only 11 million units of Windows Mobile during the last year.

According to a research release last week by Canalys, iPhone has already surpassed Windows Mobile in terms of market share.

However, if Xperia X1, which is set for release in the second half of the year, will be a success it is possible that Sony Ericsson would consider another smart phones with Windows Mobile. Also there are rumors that Microsoft is trying to sign a partnership with Nokia, one the owners of Symbian platform, along with sony Ericssson, Samsung and Panasonc.

In another piece of news about Sony Ericsson, the Wall Street Journal reports that Sony Ericsson's new Chief Executive Hideki Komiyama that despite the company’s efforts to increase its presence in the US, Sony Ericsson is not interested in acquiring Motorola’s mobile phone division.

"The idea is not attractive," said Mr. Komiyama. "Motorola itself is a strong brand. Changing Motorola to something else would be killing this brand," he continued. Plus, there are all the distractions of a large merger to consider, he added. "Our U.S. strategy is already set on organic growth."