Take a current low-end Kindle, shrink the chips through a couple of generations of fab improvements, and they'll cost a fraction as much as today's versions.
However, from what I can find on the web, it seems that the Kindle's e-ink screen makes up about 2/3 of the cost, so ultimately it will depend on how fast that can be reduced. I hadn't realised how expensive the screen was, I'd assumed most of the cost would be in the electronics.
The could probably throw a cheap LCD on there, but then the battery life will suck.




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