Amazon has the possible introduction of the Kindle however they seem to want to work with outside suppliers. This means that if they introduce their own unique reader it will be manufactured by someone else under contract to them. That part is easy. The iRex has the most advanced hardware and e-ink screen currently in production. This serves as a benchmark. We still don't know who will make the actual unit.
In sales the worst thing is a boomerang. That is a good that is sold and comes back. At Amazon's reported profit margin (from 10k reports) they do not have the margin to survive in that market with the failure rate of the iRex.
Sure they want to sell the unit and then sell the books to go on it. The ultimate goal most likely is for either the device directly communicating with Amazon or through a USB connection to a computer and then to Amazon where you can browse Amazon just as you do today and buy the book, have it downloaded to the reader, and never have to do anything other than pay for it.
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