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I don't believe the argument that e-reader markets are saturated already. This may be true in markets like the US and Australia, yet even in Germany - one the biggest book markets globally - the e-book market is still in a rather early stage.
Additionally, there are substantial markets like Latin Amerika that haven't been really developed yet.
Yet e-ink reader are possibly endangered by cheap tablets flooding these markets before e-ink readers have even gained any foothold.
For the saturated markets product innovations are required to attract existing owners of e-book readers to upgrade. Instead we are rather seeing a reduced range of options. All the major readers are quite similar now.
We aren't even seeing 5" and 7" readers any more.
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