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The Kindle (same screen as the Sony Reader) and the iLiad are in slightly different markets, but it is far sighted of Mobipocket to support even an indirect competitor to the Kindle. The fact that there was discussion (perhaps uninformed) of a $50 Kindle suggests that Amazon could make plenty of money selling e-books. Since Mobipocket's own reader software is free, this is clearly the business they are in.
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