Sony Ericsson has obviously been asked that question a few times recently, as it has posted an answer on its developer pages. It says:
The difference between our other camera phones and Sony Ericsson Cyber-shot phones is the combination of and seemless integration of imaging applications, image quality hardware, easy and intuitive camera user interface, high resolution screen and lighting solutions. This helps the end-user to use their Sony Ericsson Cyber-shot phone like a real digital camera. Yet all Cyber-shot phones are phones first and foremost, and it is this connectivity that enables the sharing of photos and videos.
So now you know. The site also reveals the full (and pretty comprehensive) range of audio and video formats that the new K770 3.2MP Cyber-shot supports:
Video: 3GPP™ (H263, H264), MP4, RealVideo® 8, WMV, ASF
Image: GIF, JPEG, BMP, WBMP, PNG, SVG Tiny 1.1
Sound: MP4 (AAC, AAC+, E-AAC+), MP3, M4A, 3GPP, AMR-NB, AMR-WB, WAV, G-MIDI 1, SP-MIDI, RealAudio 8, eMelody, iMelody, FHZ, XMF, WMA
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