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yes, that's the other issue. the convergence of ereaders and tablets. if u see the ipad as a reading device then $500 is a decent price, considering all the other functionality. i stare at an lcd monitor every day for hours upon hours. the last thing i need is an lcd ereader. so i guess as long as tablets don't start using reflective displays the ereader niche is protected. and it makes sense to keep them cheap and specialized. although there are some technologies on the horizon that could potentially result in color reflective screens...and could lead to a lot more convergence.
in any case, amazon still has to contend with ereader competition from the nook. in my opinion the kindle needs a significant advance forward to keep the competition at bay, especially considering it is significantly hampered by the kindle format. i'm actually considering not having a kindle for my next reader. i'll probably try to convert my kindle books to a diff format.
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