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Sony Ericsson has unveiled its first mobile phone built around Google’s Android operating system.

The Xperia X10 has an 8.1 megapixel camera, music player, fast web access, touch sensitive screen, GPS and can use apps from the Android Market or SonyEricsson’s Play Now Arena. Known as Rachel while under development, the X10is expected to go up for sale early in the first quarter of 2010. According to the company it is to be the first of a family of Android-based telephones that may launch across the year.

Sony Ericsson’s previous smart telephone, the X1 which ran on Microsoft’s Windows Mobile operating system, had disappointed many users particularly regarding its user interface. The X10′s control panel has been given an overhaul to help owners simply access social networking sites like Twitter, Facebook as well as email and other messaging applications.

The telephone can work with 2nd and 3rd generation mobile networks, including HSPA, as well as Wi-Fi. The X10 runs version 1.6 of Android and has a 1Ghz Snapdragon processor from US chip firm Qualcomm. Facial recognition software built in to the phonephone will be able to analyse and recognize up to 5 faces in a single picture, instantly connecting that photograph with a user’s'social phone book’ and calls and messages sent to that person.

SonyEricsson’s decision to produce Android-based phones is widely seen as an attempt by the handset maker to win back some share of the market. For the last three quarters it has reported losses due to strong competition from rivals, in particular Apple’s iPhone. Many handset makers are increasingly turning to the Google Android platform to attempt to see off the challenge posed by Apple’s iPhone. Unlike the iPhone, most Android devices can run background apps, permitting people to get push notifications when they receive a new Facebook message or tweet, and feature’social’ telephone books, that pull in contacts from a wide selection of online and offline sources, and thread chats without reference to the system of communication used to contact a buddy.

Sony Ericsson have not declared when Xperia X10 will go up for sale or in which countries or networks. No price for the phonephone has been set either.