The thing to remember though is the iPad is a $500 minimum device. There is definitely room in the ereader market for a $250 and under color reader and I think B&N has a hit on their hands with the nookcolor. People wanting an iPad will buy an iPad, but I think there is a market for affordable color ereaders and I think B&N has a good chance to tap into it.
I think you will see just how right they were when Amazon launches their color LCD reader next year to try and stop B&N from stealing ebook market share away.
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