You can actually "see it" in direct sunlight. But "read it"? I wouldn't be able to.
I do check email/twitter/SMS on my iPhone in sunlight with no problems, though. And the iPhone 4 screen is pretty amazing, even in direct sunlight. But its tough to beat eInk displays for use in direct sunlight for actual reading, for now. Some new technologies coming down the road may change all that, though.
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