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They obviously are in competition with each other. Whether you personally like one type or the other, they do compete.
I wanted a kindle...not quite enough to pay for one. Then I tried reading a free kindle book on my iPhone and became hooked. I stopped even wanting a kindle at that point.
Now I have an iPad and you can be sure at I won't be buying an ink reader. If all there were to read were kindles and nooks, I might have eventually bought one.
Other people can not see wending $500 and more on a tablet when they can get an ink reader for less than half the price.
Tablets and cell phones are indeed competition for dedicated readers in that they reduce the desire of their owners to buy an eink device.
Where I'd part ways would be with the notion than ink readers will go away. They will keep a nice niche for themselves because of price, and the eink screen. Some folks are going to prefer them. They are much cheaper, lighter, smaller (than the iPad), have much longer battery life and can be read in full sunlight.
Lee
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