The comparison to net books is the discussion-stopping point here. Apple responded to netbooks with the MacBook Air. Apple may respond to the cheapfone with an iPhone mini. Cut the LTE, keep it 8GB, keep it 256MB of RAM, keep a 480x320 smaller screen and full compatibility with all apps, and give it an A6 processor. Make it smaller, but with no compromises in build quality. Sell it for $300.
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