The main business is the estore/istore that the device connects to. A big store connected to a cheap device is a winning combination. If Amazon can offer a decent reading experience using dated tech at the lowest price, I think most people will buy their product. Maybe they start offering a range of products with the cheapest being much like the Kindle 3. If they can get it under $90, or even down to $50, then they will get a lot of people connected to their store. The multi-purpose devices with the latest tech will not be able to compete on price for a long time, if ever.
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