Speaking at the Tokyo International Digital Conference, Kutaragi said that the Cell processor will be reduced in size to lower power consumption and allow for multi-core architectures. Dual Cells and Mini Cells will be developed, and eventually the Micro Cell will be used to power smaller handheld devices.Read on over here.
These will likely include future mobile phones developed by Sony in conjunction with partner Eriksson. The recently released W800i Walkman phone has proved a hit, proving more popular with US consumers than fellow music phones the Motorola E1 ROKR and the Samsung A970 according to a recent survey by Strategy Analytics.
Sony developing mobile Micro Cell processor

Sony's head Ken Kutaragi says in future the company will launch the Micro Cell processor. This mobile version of the Cell processor will be used to power mobile devices, including cell phones.