Thanks for the update redweka, I have just phoned Whitcoulls and they have confirmed what you said. I really hope for kobo's sake they pull the product off the shelves. It has only been on sale a few days and for the sake of another few days they should pull it.
The damage to their reputation will be huge - and they will never win those people back. They'll buy the new kindle ($100 cheaper, even if it doesn't have wifi), or the new Sony - $50 cheaper and very similar - if not better - features.
Please kobo - pull the product from New Zealand shelves until this is sorted. Those of us who read these forums know what they're doing and now we understand what's going on. What about all the people who have walked in, paid $279(!!!!) and bought what to them at the moment is a lovely paperweight?
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