This year, Sony has already unveiled their flagship Xperia Z along with the mid-range Xperia SP and Xperia L smartphones. To keep up with the pace, Sony plans to unveil an inexpensive 5-inch smartphone later this year.
According to sources, the device will be powered by the MediaTek MT6589 SoC. The MediaTek SoC offers four Cortex-A7 cores and is intended for mid to high end smartphone and tablets market. It is also mentioned that the manufacturing of the phone will be outsourced to Arima, who is working with Sony on the Xperia E.