I don't see the problem. Every consumer electronics company is announcing new products for release later this year, aren't they? Aside from that, the wording does not amount to a real announcement anyway:
Quote:
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A new Reader model, likely adding wireless capability, will likely appear within the year as new rivals, namely Amazon.com, are expected to enter the market, he said.
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In other words, the Reader is doing well and they might expand the market. (Note: "likely".) Doesn't Apple release new iPods every year? As long as Connect books continue to work, I see no problem with this.