In the recent update for Hangouts app , text messages and Hangout conversations from the same contact are neatly merged into a single thread, allowing you to send notes via either method. And to be able to distinguish between texts and hangouts, the two sources are color-coded, and you can separate them any time you'd like. There's also a split in the contacts list for quick searching: folks you chat with on Hangouts and phone contacts that you keep to SMS. For easy access, there's a new home screen widget and improved quality for video calls.
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