There’s a “budget” smartphone category that has so far revolved around devices like the Palm Centro, BlackBerry Pearl, and a host of Windows Mobile devices like the Samsung Jack — basically scads of devices aimed below the fat wallets of enterprise.
Typically these devices are small to the point of being cramped, with tiny keyboards or work-arounds like T9 or SureType, and are low-margin for manufacturers — sold …

The rest is here:
iPhone 3G: Apple Re-Invents the $99 Budget Smartphone

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