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I want my contacts to be stored locally on my own device. (Or actually, I’d like to see them stored on my own CardDAV server but that is another discussion.)

When importing SIM contacts, they are automatically and involuntary uploaded to my Account. I cannot see any options to prevent this from happening short of removing the Microsoft Account (and thusly not being able to use the Store and other services).

Is there any way to work around this?

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The contacts are stored locally on your device, however there isn't a "phone only" address book.

Contacts are kept synchronised with your Live account (or any other account that supports SyncML, such as Google, or if you have one, Exchange Server - or anything that can pretend to be one), so you can choose which cloud service you prefer to use to back up your contact information.

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