Xperia Neo is really well equipped and priced at €250 on the market. The phone runs Android 2.3 but will soon be running on Android Ice Cream Sandwich.

If you’re looking for a compact phone that allows for reading books and PDF files or surfing, we think that Xperia Neo’s 3.7’’ screen (480x854) will do just fine. 

The phone’s performance is good enough for gaming as well, since no current games require dual core SoC to run normally. Xperia Neo runs on Qualcomm’s single core MSM8255 at 1GHz with Adreno 205 GPU.

Xperia Neo has two cameras. Thankfully there is a growing number of apps that allow for free video conversations on internet, and the front camera will come in pretty handy. Unfortunately, although the camera boast 8.1 megapixels, the photos are not as good as on more expensive phones with 8MP cameras. Xperia Neo boats mini-HDMI out so you can view photos or videos directly on your TV. 

User’s will get an 8GB microSD card with the phone, but the capacity can be expanded up to 32GB. The battery is more or less standard and will run for a day if you surf and talks a lot, or up to three if you use the phone occasionally.

Xperia Neo’s design is a bit unusual but also very comfortable. The curved edges and the bottom of the phone look a bit strange on pictures, which is why we’d advise you to try it out for yourself before saying anything. We just hope that the feeling of cheap plastics won’t ruin the good impression of Sony Ericsson’s Xperia Neo, as in truth – the phone is one of the better sub-€260 phones on the market.