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ZTE (and Orange) pulled off a coup with the San Francisco and trumped all low-end Android phones due to the specs of the phone.
With this WP7 device, they are sadly missing the mark. You can already pick up sim-free 1st generation WP7 devices which have higher specs for less than £200. In fact i picked up the LG Optimus 7 for £200 half a year ago!
There is a need for more WP7 devices (it's a great platform that deserves a bigger market share), but this device does not help. With only 4GB of memory (only 2.9GB is useable!) then it rules out most uses of the phone beyond using it as just a phone.
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