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not real surprising. It was aimed at 'tweens' but priced like all the rest of the smartphones, which made it too expensive, but yet too lacking in features to really be competitive in that price bracket.
I'm not sure of the actual prices but if your going to price a phone like an iPhone, it better be an iPhone. This is an extremely hard market to break into, and it would be need some serious technology and an extreme amount of marketing to make any progress. Though Microsoft has the resources for that if they want....