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Amazon doesn't need to clutter it's lineup with five momdels but imagine this:
$99 Kindle Junior -- functionality similar to Kobo
$199 Kindle 2 -- reprice of their current edition, with the 2.5 features
$259 Kindle 3 -- the 2010 edition with all 2.5 features, thinner design, revamped keyboard, wifi enabled, serif/sans serif font ... something to set it apart from the existing model and justify the higher price
$399 Kindle DX -- reprice of the current edition, with 2.5 features
$499 Kindle College -- update of the DX to make note-taking easy, wifi added, possibly a revised screen size (ie little larger)
It would also allow it to segment retailers targeting Wal-mart vs university bookshops for example
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