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They could still cut in on top. Which they can't on e-readers. Kindle is already pushing the technology to its present day limits.

Sure ... but I think Apple has a way of redefining the "high end". Smart phones were already considered expensive when Apple launched the iPhone.

The problem is e-ink. Right now it's grody grey, monochrome, and has a 1/2 second refresh time. Apple can't work with that.