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The Sony Ericsson Xperia Arc runs Android 2.3 Gingerbread. It features a 4.2 inch touch display, 320MB of internal storage, an 8GB microSD card, an 8 megapixel camera and is powered by a 1GHz processor with 512MB of RAM.
Check out the following hands on video with the Sony Ericsson Xperia Arc courtesy of SECommunity.
source - SECommunity