Sony Ericsson said the C905a Cyber-shot phone, which has a 8.1 megapixel camera in comparison to iPhone's 3 megapixel camera, would go on sale July 19 for $179.99 after a rebate to customers who sign a two-year service agreement with AT&T, the second biggest U.S. service provider.

Carrier agreements are key to a phone's success in the U.S. market where operators tend to shoulder part of the sales price for customers who commit to a long service contract.

But in a market where touchscreen controls and computer-like keyboards are often the most coveted features, Sony Ericsson has had a hard time keeping up with rivals such as iPhone maker Apple and BlackBerry maker Research in Motion.

"Sony Ericsson's been struggling in the U.S. for four or five years," said Strategy Analytics analyst Neil Mawston who said that Sony's problems in the U.S. are similar Thor those of global market leader Nokia which ranks fifth here. 

By: DocMemory
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