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If I have to choose between a smartphone with a > 5 inch display, and an eReader device with a 6 inch display, of course I would select the smartphone! The smartphone is FAR more versatile and will satisfy more of my technology needs than an eReader.
But the thing is, I don't have to choose between them. $50 US dollars will buy you a very usable eReader device whose performance is easily the equal of my $300 PRS300 of 10 years ago, or so.
The limitations of an eReader is much less significant than the cultural shift we see in the importance of traditional literacy. As a blogger about photography, I have seen this in my own blog. I am MUCH more comfortable with the written word, but my viewers want to see videos.
This has sort of frozen me in place for the last year or so in regards to my blogging.
The competition isn't from other eReading devices, it is from the changes in how people want to absorb new knowedge and entertainment.
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