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Right now, I think the color e-reader market is really a niche market. Most readers tend to read fiction without lots of pictures. For these folks there is no need to upgrade to color.
Those of us who read lots of non-fiction or graphic novels really appreciate having the choice of color. I am hoping the tablets and iPad type devices will open up the e-reader populace from primarily hard-core readers to some of the more casual readers. If it introduces more folks to e-books it can do nothing but help the e-book market :-)
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