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When I go to coffee shops, I rarely see a dedicated ereader, but I see lots of smartphones and tablets. While some people may be playing games, texting, "sexting" or checking email, many (like me) are reading news or ebooks.
I see more people on these in a coffee shop than with a dead tree book or newspaper. So I think the popularity is there - but it includes ereaders + smartphones + tablets - all the devices you can read on. Dedicated ereaders are only one way people can read.
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