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Unless Amazon is planning to make their future generations of Kindles drop mobi and azw, I also don't see why they needed to stop accepting mobi/azw files for conversion.
They still plan to support mobi/azw if you already have those books/documents in your library, so I don't see why it would be a cost cutting issue.
I'm more inclined to believe newer generations of Kindles won't read mobi/azw.
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