Just how many megapixels can be packed into a phone? More than 16, apparently, with Sony commercializing new sensors that could result in a 16.4-mp handset next year. And though the main way to differentiate a phone lies in the software, as Apple has demonstrated, many vendors think it will be easier to score points off the iPhone on the hardware front – especially given that handset’s midrange camera and its recent problems with antennas and glass.

Sony Ericsson might be expected to use its Japanese parent’s new technology at an early stage, given its heavy focus on cameraphones with the Cybershot and Satio ranges. It is also adding other hardware features and accessories to bolster its Android range and avoid looking too similar to all those other Android superphones around, including the new LiveView gadget.On the camera front, Nokia, Samsung and Sony Ericsson have 12-megapixel phones, and in Japan, Panasonic has extended its Lumix camera brand to handsets with a 13.2-mp monster. Now Sony has commercialized new sensors that could, in future, push the figure to 16.4-mp.

There is a law of diminishing returns on how far more megapixels really delivers a better experience on phones, but megapixels remain one of the drivers of consumer interest in devices and Sony Ericsson has taken the lead in promoting its image focused handsets, like Satio, as ‘cameras with telephony’ rather than cameraphones.

So the Japanese giant’s ‘Exmor R’ backlit CMOS image sensors could be important to future devices, promising significantly higher sensitivity and low noise. This is the first time the Exmor R platform has been put into handsets and there will be two modules, delivering either 16.4-mp or 8.13-mp. Mass production will start at the end of this year and the sensors should appear in phones and other gadgets next year. More immediately, Sony Ericsson has shown off its latest accessory, LiveView, which looks like a wristwatch face, but is not a standlone watch-phone. Instead, it offers a ‘micro display’ which is a companion for an Android phone such as the Xperia X10 or X8 (though it will apparently also work with third party Android devices). It delivers a range of data from the handset to the 1.3-inch screen, including text messages, RSS feeds, Facebook updates and missed calls. It can also be plugged into third party apps to deliver those updates.

Navigating LiveView is performed by pressing on the edges of the screen, rather than the screen itself. The product will cost €69 and needs Android 2.0 or higher.