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Who knows, maybe reading is the new black.
Additional software could turn any of the iPhones into iReaders or even large screen iPods into iReaders. Apple would not have to make a single function device to enter the ebook market. It would be a logical extension of the iTunes store.
Given Apple's history of providing disposable content, it makes sense that they would offer a device/software designd to deliver time sensitive content -- magazines -- rather than evergreen products such as classic books.
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