Sony Ericsson Xperia Neo V

The Sony Ericsson Xperia Neo V is almost identical in hardware terms to the existing Xperia Neo, but it comes with a newer version of Android and additional Sony Ericsson software enhancements for a better user experience.

The key hardware change is that the Neo V has a 5 megapixel camera where the original Neo has an 8 megapixel unit. It is unusual for a manufacturer to downgrade a phone like this, we suspect though that there might be supply issues with the 8 megapixel sensor either due to the earthquake in Japan and/or Apple buying up inventory for the next generation iPhone.
The new version of Android is 2.3.4, a pretty slight update to the version 2.3 in the original Neo. However, Sony Ericsson have improved the camera capture capabilities, video playback options and social networking services plus there is Google Talk with Video Chat (which is perhaps what the "V" stands for).
Hardware differences apart from the camera are extremely slight, with the Neo V coming in different colours (white looks particularly good) and some audio tweaks such as Sony's new xLOUD system.

Just to recap - this is a 1GHz device with 512MB of RAM, a 3.7" 480 x 854 pixel display, the 5 megapixel camera on the back has with 720p HD video capture, it has GPS, 3.5G, WiFi, microSD expandable memory and Bluetooth. Because this is an Android phone then it also has a web browser, media player and access to thousands of applications in the Android Market.