I still believe there is a market for a bare bones, low cost ereader.
When Kobo came out, the competition in 6" e-ink readers was basically the Kindle 2 ($259) and the nook ($259). The Kobo was more than $100 cheaper than either one, and they sold like hotcakes. Now we have the stripped down Kindle Wi-Fi at $139 and the nook Wi-Fi at $149 and the price reductions on the Sony ereaders.
I look for Kobo to reduce their price or leave the marketplace. Borders management seems a bit lumbering and ambivalent to me. I don't see them reacting quickly and decisively to any fast-breaking developments. They seem more like a "we'll discuss this at the next board meeting and appoint a committee to make a recommendation that we will compromise after discussion" sort of company. I could be wrong, of course.
Downloading a book from my computer is a non-issue for me. I do it with iTunes and I'm comfortable with the process. For one thing, it's easier to surf the iTunes store from my desktop computer with a real keyboard and a big monitor than from any portable device. Also, I am mature enough not to need need need some tune instantly or I'll just die, you know?
Then there's the fact that I want my ebook file on my computer, not "safely stored" on somebody else's server. So even if I did download a book directly to my ereader, I would later sideload it from there to my home computer anyway, if I could. It's just as easy to go from internet to computer to reader as from internet to reader to computer.
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