I guess they believe that there is a market for a media device that allows you to surf via wi-fi.
see the recent announcement on the iPod Touch which is practicly an Iphone without the phone but with a Wi-Fi capability. see iPod Touch and iPod touch
Sony on the other hand are planning to release a PSP phone, their famous PSP gaming device, now coming with an integrated phone.
see story on Sony Ericsson working on a PSP phone?
