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OLO's iPhone-powered computer: a Redfly for Apple?

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OLO is showing a mysterious device on its website that appears to be an iPhone-powered subnotebook. There are no details to speak of, but there are two options:

1. All the guts are in the iPhone. This is the approach of the Redfly, which lets the mobile device do the thinking and it just extends your toolset. This limits costs but also functionality.
2. The iPhone merely augments a full laptop setup, acting as a source for input and applications.

The second option seems more likely from the picture, as you can see they’ve put a full OS X desktop up there which couldn’t possibly be being served from the phone. That said, the cost of the hardware and software required to run OS X (in addition licensing issues like those faced by Psystar at the moment) would make it much less of a compelling product, as it would likely cost as much as a regular laptop.

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