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I think we are already seeing the effects of phone/tablets taking away much of the market for ereaders. Fewer providers, long times between updates, much slower pace innovation.
To wit...there are very few independant ebook readers compared to 5 years ago.
Color “eInk” never made it to market.
All those cool premium large eInk devices - none of them made it.
Prices stopped coming down such that you can actually get a phone or a tablet as cheap or cheaper than an ereader.
Extinct? No. There is a market demand to keep eInk in existence.
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