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If I can add my two cents. This was a great little company that really worked hard to be ahead of the crowd. Sure their customer service was terrible and even when they tried to communicate on their blog or forum they often fell short. Still, they had products that technologically beat all the others time after time.
I think there problem was zero distribution until only recently which was unable to stem the red ink. This is an example of not sucking it up a bit and compromising with Amazon when Amazon was considering outsourcing the reader. Just like PictureTel back when refused to work with Intel and never recovered.
I suppose there will always be interested buyers but with the strong Apple entry and flood of Android and Microsoft slates about to appear, eInk has issues. Sure the screen is better and people will always argue it is better than the backlit screens. Unless eInk can overcome the refresh rates and at the moment only offering black and white screens I think these readers are in serious trouble. It will be interesting to see what Amazon does to counter Apples entry into this market offering a multipurpose device.
So to put it in one word. It is distribultion. They failed for the lack of it.
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