Sure they managed to still pull in a reasonable profit that would suffice smaller companies, but they intend on looking at Windows Phone 7 to further expand their profits; according to CEO Bert Nordberg. During the company's financial conference call, Nordberg announced Sony Ericsson's intentions on looking at the new mobile operating system from Microsoft – which is being praised by many people in the industry.
However, he didn't explicitly provide any additional information about availability except for a 2011 launch window. Naturally, it has shown that profit can be made heavily with smartphones as opposed to feature phones – which Nordberg views as in “decline.” Since Sony Ericsson isn't part of the first batch of manufacturers to launch Windows Phone 7 devices this fall, some analysts argue that they are already at a disadvantage by pushing off their launch until 2011.
At that point, it's argued that the competition will already be working on second generation devices where Sony Ericsson will still be on their first. Nevertheless, Sony Ericsson is probably well aware about their situation and will hopefully remedy it something truly spectacular.