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There is room for "budget" dedicated e-readers; mid-range larger "magazine readers" in b&w and colour; netbooks for portability; tablets for playback; advanced laptops / desktops for everyday heavy duty work.
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I'd agree with that. I think we'll see a whole range of options tried over the next decade or so. For instance, as manufacturing costs come down it might even be possible to make a more or less "disposable" reading device. Such an item might have something like a preloaded set of "The Complete Works of..." a copyrighted author, or all the volumes in a popular series, or whatever bundling could be marketed at a price which could include the cost of a simple device with no wifi, no USB, no ability at instal more material, and the bare minimum of electronics needed to read the content. It's not my preferred way of doing things, but we've already seen that philosophy working in many other product areas.
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In this mix of "tiers", tablets have the least compelling raison d'être and will have a hard time justifying the $829 price point for 9.7" 3G and minimal 64 GB storage. (And that SIM card to run 3G: it's a special model, not the one in your phone. And that USB cable -- it's extra. Extra too for: the docking station. And the external keyboard. And the leather case. And each and every app that runs on it since it can't run a single Mac or Windows app.)
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I'm with you there too. I can't guarantee that I won't eventually fall for an iPad, out of sheer 'gadget greed' but right now my full function tablet PC is a much more attractive option for what I expect to be able to do.
Cheers,
Chris