Remember the little lawsuit Sony Ericsson filed against Clearwire? Nope? You’re better off for it. SE had filed suit in January, claiming Clearwire’s logo looked a little too familiar, and it would cause confusion after Clearwire announced its plan to release its own smartphones. But there’s a happy ending.

Although we wish these photos were taken with a Cyber-shot camera, they weren’t — funny how that works. No matter, we’re sure this isn’t the last blurry spy shots we’ll see so, let’s cut to the chase here. If the image above is in any sort of way accurate, it looks as though Sony Ericsson has a Cyber-Shot branded Android device in the works.

With its 2011 Xperia lineup, Sony Ericsson is looking to retain its position as one of the major players in the Android ecosystem. While last year’s (depending on your locale) Xperia X8 and X10 sold well, they were criticized by some for shipping with an outdated version of Android, as well as a variety of software issues.

It’s no secret that Sony Ericsson had a bit of a rocky start with its first generation of Android phones. Its 2010 Xperia models have been criticized for shipping with an outdated version of Android, as well as lacking some basic functionality like multitouch out of the box.

Sony Ericsson posted their first-quarter earnings for 2011 earlier today and despite lower sales figures, their outlook is positive. Total revenue dropped 19% year-over-year to 1,145 million Euros (~$1.64 billion USD) down from 1,405 million Euros. However, the average selling price for devices increased from 134 to 141 Euros (~$202 USD). This increase was due to a move away from feature phones and towards smartphones.