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Well they could be in a pretty good position with the iphone platform. Look at the number of ereading applications currently available and couple that with the comments from Amazon about enabling kindle books to be read on the iphone et al. If they give it a little more time they can roll out a larger form factor ipod touch with a ready made ebook infrastructure. Ebooks would only be one angle for them. It remains to be seen how it would do against e-ink devices, but it's not a big stretch to see something like that coming. For me, e-ink is definitely preferable over a backlit device.
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