The second phone in the XPERIA line will not be manufactured by HTC, but by Mobinnova, a handset maker under Foxconn Electronics (Hon Hai Precision Industry), according to Commercial Times.

The partnership with HTC will come to an end when the X1, the first and only phone in the XPERIA line, when the business cycle of the phone is completed.

The X1 has faced numerous delays and is still not available in the majority of Sony Ericsson markets, thus this could be the factor of Sony Ericsson's decision.

There is no information at this moment on the second device in the XPERIA line

[via DigiTimes]