It seems Sony Ericsson is working on a budget version of the upcoming Sony Ericsson P990 probably the P970 or P980. The stripped down version might not have a QWERTY keyboard. It will be smaller and much slimmer than the P990 probably by discarding Wi-Fi and 3G. No news as to which other features have been downgraded the camera may be downgraded to 1 Megapixel from 2 MP to keep the costs down. The JogDial and QVGA touchscreen seem to be there, at least. The P990 is expected to be available in Q1 2006.
Via – Clubsonyericsson – Engadget