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I don't think that Amazon is going to have a yearly upgrade schedule like cell phones. I think that they'll upgrade the K3 when technological developments mean that it's worthwhile. I.e., if a new e-ink screen with 50% better contrast than the Pearl screen comes out, I think Amazon will build a new Kindle incorporating that.
I don't think we'll see a Sony-style touch screen until they become much cheaper: I think that Amazon believes it's important to keep something similar or lower than its current pricing to keep it well under the cost of an iPad.
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