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Is there a built in feature into OS X Lion which is similar to iOS 5.0's shortcut feature? For example, by default if you type "omw" on the iPhone, it gets expanded to "on my way" automatically.

I know that there are probably 3rd party solutions, but I would prefer using an Apple solution.

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You can do this in System Preferences in the Text tab of the Language & Text pane: Language & Text System Preferences Pane

You can toggle on/off the built-in replacements, as well as create ones of your own.

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As mentioned, OS X (since 10.6) has built-in text expansion capability. However it's also worth mentioning TextExpander.

It does the basic replacement that the built-in utilities do, but it offers a lot more functionality and customizability. For example, you can have it insert variables like the current date, move the insertion point (e.g. you can wrap something in a tag but have the insertion point stay after the word, not the closing tag), or insert new lines.

For many people the built-in capabilities will likely be enough, but TextExpander could be consider the Pro version.

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