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"If the device manufacturers and Microsoft want to increase their sales, the WP7 devices need to grab your interest from a hardware perspective."
I respectfully disagree with that statement. Superior hardware specifications is less of an attraction for the average consumer than case design, OS functionality, price, and marketing.
You and I (and most of the posters at TechRepublic) care about specification because we are technies but we are not average consumers.
Many of the average consumers buy the cheapest smartphone in the wireless store. Others buy what their friends have. The average consumer doesn't ask about chipsets, number of cores, total storage, ability to tether, or megapixels. They take a few swipes on the touch screen and buy it or move on.