I've heard people guessing that ereaders will drop to $99 by Christmas. I'd love to see it, but I guess we'll have to see. The iPad has put a huge amount of downward pressure on price, though I find it a stretch to argue people think they want a kindle then decide to drop double for an iPad.
I agree with FBone that a handful of effective companies are better, and I'm sure that's all the market will bear after a while. Don't forget about the nook too, which is supposedly a hefty competitor. I've never touched one, but I know some people who swear by them.
Ultimately, more options and more competition leads to benefits for consumers!
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