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Today's price reduction IMO would have happened anyway -- the Barnes and Noble move just accelerated what Amazon was going to do nearer to August. Nevertheless, today's price move creates a huge pricing hole for a putative K3 device.
I expect Amazon to come out with an improved function K3 and also a bargain basement device priced at $149 or lower (probably wifi only). I do not expect the K3 to have color or touch; maybe more memory, audio recording, voice recognition, UI improvements, user customizations, more fonts -- especially for non-western alphabets are all possibilities.
I also would not be overly surprised to see the KDX be discontinued and replaced with new devices specifically targeted at the business and academic/education communities.
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