According to CNET Asia the decision have HTC make their next Xperia is due to the reported dissatisfaction of Sony Ericsson over the design of Xperia X1.

While, the Taiwanese news site DigiTimes reports that, according to the Chinese-language Commercial Times paper, Sony Ericsson is set to have its rhe Xperia X2 manufactured by the Taiwanese ODM expert Mobinnova .

Let's see what could be the problem with HTC?  Delays in delivery.  Cracks in the case and problems that caused  Sony Style Stores to recall the Xperia X1 in the United States. The Sony Xperia sells for $799.