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I saw a color phone last week at Best Buy. TINY little screen! But the device was very small and it was only $200 without a service plan. Microsoft has done well to recognize that Palm will battle it at the low end, but the volume threat is smart phones like the Sony Ericson. Microsoft has been promising a smartphone for a year, spreading Fear, uncertainty, and doubt. They have perhaps prevented a number of Samsung Palm phone sales with their promise to deliver a smart phone with the Sendo a year ago.
But, they have not kept people in Europe from buying Nokia Symbians. If Symbian could only make enough money off of these to get Quartz back up and running.
As it is they will have the 800 with camera and the SmartPhones may have to go back to the drawing boards again. MS always seems to take two or three tries to get an OS right anyway. If they don't do SmartPhone right the first time (one way they could do this is support all the US cell protocols right out of the gate.) Nokia will have a big lead on them for some time.
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