Is there even a market?
For a smartphone this compromised on Storage?
And from Sony of all people.
Sony's latest Android smartphone, the Xperia U, hit retail today, completing the first trio of handsets in the company's NXT collection. The Sony Xperia U is the smallest of its NXT range siblings, with a 3.5in Bravia-branded touchscreen at a resolution of 480 x 854. Sony Xperia U Powered by a 1GHz processor with 512MB of …
I believe it's the cheapest dual core phone you can currently get. If you need oodles of storage, perhaps it's not the right phone for you. Sure, a uSD slot would have nailed it good and proper, but I will bet the consumption of my hat that sales figures will argue against any suggestion of "fail" for this device.
The Xperia SX which looks to be all this phone isn't; small, light, expandable (8GB internal and takes an micro SD), fast (dual 1.5GHz and LTE), hi-res screen and launches with ICS. Japan only at the moment but looks a good option for those of us who don't want surfboard sized phones.