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400$ is too much for an ebook reader.
You can get a new low end laptop for around 600$.
Most people who've seen me reading on my SONY liked the idea but thought the price was too high... I have to agree with them.
An avergae person does not spend 400$ on books in a year, not even in 2 years...
books are not like music, an ebook reader won't become a fashion item like an iPod...
I think manufacturers in this price range should go after specialized markets e.g. try to replace college textbooks
--- just my two cents worth
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