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Recommend a smaller Android phone?

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Looking up the specs, the Xperia U looks like a pretty nice phone. Dual core, WVGA resolution, only real problem is the very limited internal storage. 4 GB with no card slot is a fail IMO.
 
I've ordered an S2.

My brother got his phone today, of the small size I thought I wanted, and it was really too small to comfortably operate as a handheld computer.
 
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