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Emulators and Beta Testing can Alleviate Costs

Great point, however purchasing one of every device may not be necessary in some cases. Some platforms provide for hardware emulators (not just simulators) in their SDK's, which greatly reduce the need to buy each device. Others offer advanced (fee-based) plans that allow developers to borrow or rent different devices. Our experience is with the Palm OS Emulator, which was quite good for testing multiple hardware configurations. Adding in beta testing on varying devices would ensure a well-tested product. Further investigation would be crucial, as you have pointed out.

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