"I think the important thing is we believe there is a new category of use, just as with camera phones where having a camera integrated in the phone meant you had a camera with you at all times. Still there is a market today for digital cameras. The great thing that we're doing with the W800, W600 is we're really establishing that the mobile phone is a credible digital music player."
Some rivals, such as Samsung, are starting to use small hard drives in phones…which could make them true rivals to stand alone music players. But Sony Ericsson President Miles Flint says…he's sticking with the Memory Stick for now…
"With Memory Stick Duo, we can now go up to 4 gigabytes. So I wouldn't rule out a hard drive at some point in the future, but only when we can incorporate it into the phone with the ruggedness that we can already achieve with memory stick."
Sony Ericsson President Miles Flint. Bloomberg Boot Camp, I'm Fred Fishkin.