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I've seen 1 Kindle in the wild on an Airplane last fall. I see people with iPhones everywhere of course but never pay attention to what they're doing.
But yes, multifunction devices are what will really help expand the eBook market. Most people probably don't read enough to shell out money (especially at current ereader prices) for a device that does nothing but read books. But they probably would grab some ebooks if some multifunction device they have has an easy and intuitive ebook feature built in.
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