If you've ever seen the company's Xperia smartphone, you know that it's some high-quality hardware. Rumors suggest the Android-powered Xperia will have a 4-inch touch screen with an 852 by 480 resolution, slide-out keyboard, Bluetooth, Wi-Fi, 3G, assisted GPS, 8.1-megapixel camera, and it will have a smoking-fast 1 GHz Snapdragon processor. There's still no official word about what type of screen we'll get, but I'd assume it's capacitive if it's running Android.
The processor is going to be very important because Sony Ericsson will likely throw on a fancy UI on top. You can check out the reportedly leaked video below, but it looks like there will be a lot of animations during the transitions. While it definitely looks very pretty, there's a chance it could also bog the phone down, or just get in the way of your normal flow. I've yet to see an Android phone that really zips along with a custom UI (the HTC Hero is really nice, but does lag after a while). Hopefully, Snapdragon can give Android the horsepower it deserves.