Both its and it's are grammatically valid possessive forms.
> it could be bad timing for Amazon and it's new Kindle Fire HDX tablet
Is it valid here? If so, why? I've always been taught that "it's" was only a valid contraction of "it is" or rarely "it has", neither of which fit here.
Scroll down to historical note.
http://en.wiktionary.org/wiki/it%27s#Adjective
This is one of the more common pitfalls that freshmen of Grammar Hitlerjugend step into.