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Though the processor might seem inadequate, the phone will be coming with Jelly Bean, which is pretty smooth in itself. I think Sony is making some of the best looking devices in the market these days, and their UI is just absolutely gorgeous. For these reasons and others, I think this phone would appeal to people who aren't looking for absolutely massive screens, or blazing fast processor speeds, but want a reliable and an aesthetically appealing device.
2 years ago on Low End Sony Xperia E Gets Pricing, Around What We Expected