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Is Amazon’s iPad Killer Going Up in Flames? Grasso Says No

Will buyer's regret derail Amazon’s attempt to steal market share from Apple’siPad?

A growing number of published reports suggest that people who have already bought a Kindle Fire are re-thinking their purchase.

According to theNew York Times complaints are many:
- There is no external volume control.
- The off switch is easy to hit by accident.
- Web pages take a long time to load.
- There is no privacy on the device; a spouse or child who picks it up will instantly know everything you have been doing.
- The touch screen is frequently hesitant and sometimes downright balky

Doesn’t sound like satisfied shoppers by any stretch. The paper also says “the most disgruntled are packing the device up and firing it back to the retailer.”

Not good.

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”This is a company that needs to improve its hardware performance,” says an animated BGC analyst Colin Gillis. And to make matters worse Gillis tells us “they’re losing money on every single unit, about $20.” He says if you want exposure to strong Q4 trends, take a look at Google.

But trader Steve Grasso isn't worried. He argues that the price point make a world of difference. The Kindle Fire costs $199 while the iPad is $499.

That alone gives the Kindle Fire – it’s own fire power. And despite complaints Amazon will still has the number 2 tablet eco-system behind Apple.

”It doesn’t have to be a total iPad killer to be an iPad killer,” he says.




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Trader disclosure: On Dec 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Kelly is long IWM; Kelly is long LNG; Kelly is long EUR; Kelly is long CHF; Cortes is long; Cortes is long Treasuries; Cortes is long INTC; Cortes is long SVU; Cortes is long TSN; Cortes is short; Cortes is short AUD; Cortes is short EUR; Cortes is short GBP; Cortes is short AAPL; Cortes is short DB; Cortes is short Crude; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Weiss owns EUO; Weiss owns JPM; Weiss owns QCOM; Weiss owns HPQ; Weiss owns GM

For Steve Grasso
Stuart Frankel & Co and its partners own CSCO
Stuart Frankel & Co and its partners own CUBA
Stuart Frankel & Co and its partners own GERN
Stuart Frankel & Co and its partners own HPQ
Stuart Frankel & Co and its partners own HSP
Stuart Frankel & Co and its partners own HSPO
Stuart Frankel & Co and its partners own MET
Stuart Frankel & Co and its partners own MU
Stuart Frankel & Co and its partners own NYX
Stuart Frankel & Co and its partners own PRST
Stuart Frankel & Co and its partners own RDC
Stuart Frankel & Co and its partners own UAL
Stuart Frankel & Co and its partners own XRX

For Simon Baker
Simon Baker OWNS Abbott Labs

For Urs Dur
Lazard Capital Markets LLC makes a market in FDX securities.
Lazard Capital Markets LLC makes a market in UPS securities

For Mark Fields
No disclosures

For Colin Gillis
Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Amazon within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Amazon.

For Dennis Gartman
Gartman is short Euro
Gartman is long equities

For Craig Berger
FBR acts as a market maker or liquidity provider for the company's securities: INTC.



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