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If I had to guess, I'd expect the dedicated reader to continue dropping in price for the next few years, and fade away in another decade, though I could easily be wrong.
I do see tablets continuing, and taking over from the dedicated reader, especially as prices drop. Phones are too small, but tablets have the form and function people need. At the same time, I don't expect tablets to be the same as they are now. Not only will resolution continue to climb, but I expect the screen technology to improve to the point that most come with a reflective mode for reading.
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