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I believe the app problem is pretty well known: the developers didn't get the specs for the 8.9 or the new KF-HD 7" in time to do updates to the apps before the device was delivered. So the apps you see out there were written for the year-old KF1.
I think this will improve with time, but for now it's surely a bummer.
That said, most of my existing apps, originally purchased for my KF-1 do work on my KF-HD 7". I expect the 8.9" has more of a problem.
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