Sony Ericsson has announced a new budget clamshell the Z310 which does cut back on features but not on looks. The Z530 has a polished finish the front icon display is integrated into the design, hidden discretely beneath the surface until a message or call is received. The phone has a single color display (96 x 64) . It also allows you to assign colored light effects to contacts in the phonebook so you can know at a glance who is calling. The Z530 has a 128 x 160 pixel internal display which supports 65k colors. Other features include EDGE, Bluetooth, Java, MP3 ringtones, Infrared and a speaker phone. The only disappointing feature is the VGA camera they could have at least squeezed in a 1.3 MP one.
Update - Images added

Pricing and availability of the Sony Ericsson Z310 is not known yet.