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There are Java enabled phones that are pretty cheap and reasonably robust. Ideally someone would take one of those and fish out all the actual telephony stuff (no accidental 911 calls or calls to random people). I think you could do it for 50 euros if they were mass produced...

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But Wouldn't you think the display would need to be bigger?

Definitely, especially if going touchscreen(which is the way to go - imagine how often a stylus would go missing). The resolution needn't be massive, so I would hope this wouldn't be costly.

Depending on the child and age, you could get away with buttons just fine, rather than a touch screen. My daughter started wanting to play with phones at about 1. She just liked to push the buttons and probably wouldn't have cared much about a touch screen, but did drop the phone we gave her a lot.

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