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Here’s the second part. Sorry, no dancing!

What does this mean for companies like Sony and Amazon who remain with e-ink products? I would suggest – nothing. As B&N said in the presentation there are enough e-ink people around so that B&N will not discontinue their original Nook.

You have to be careful of the press, especially the tech press which doesn’t have much of an understanding of how markets work. It likes to pit one technology against another and find a “killer”. Markets don’t work this way, especially nascent markets like the one that contains ereaders. Despite all the hype, the total number of ereaders is tiny and there is plenty of room for all sorts of new and different stuff. This means that there are many of niches to fill. The Nook Color will have little, if any, effect on Amazon or Sony. The people who are attracted to the Nook Color are not those who will be attracted to a Kindle, and vice versa. What is important is that a new class of ereaders will join us early adopters, develop a new class of users, and the total market will burgeon.

Kudos to B&N for realizing that the market is not monolithic.

 
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