The People app gives you quick access to the people you want to reach. When you add accounts to your phone, such as Google accounts or Exchange ActiveSync accounts, any contacts from those accounts are added to your phone.
Although you view all contacts in the People app, your contacts' photos appear throughout your phone. For example, if you assigned a photo or they set one up on a social networking site, you'll see their photo as an icon in emails. And this isn't just a pretty picture! Touch the photo icon to see the ways to contact that person - text, email, and phone - and start a message or call.
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