Peter Fader

Barnes & Noble had a rough holiday season: Same-store sales fell compared to a year ago and revenue from sales of the Nook tablet stalled. Despite a heavy investment in the Nook business, Barnes & Noble is expected to have a three-year cumulative loss of more than $700 million, according to Barclays Capital -- an indication that the bookstore's multi-front war with online retailer Amazon.com doesn't seem to be working.

In the wake of Amazon’s disappointing Q4 results, the Kindle Fire has ignited a veritable firestorm of debate.

Lackluster reviews and suspicions that the tablet device is being sold below cost have led analysts to anxiously eye the company’s dwindling cash reserves.  But amidst the heated debates about functionality and pricing, one concern has received relatively little attention: should Amazon be competing in the tablet market in the first place?

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