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Hmmm, I doubt they are selling them at a loss. Maybe the margin is minimal, I certainly would never sell that volume of product at a loss. Especially when someone can easily root it and download the Kindle app and buy my competitor's product.
After watching the video I think the author is trying to impress that Android type-devices are going to become the new "Ipod". Except that unlike the Ipod multiple companies will produce them and price pressure is going to kick in... something like the Walkman which started out in the hundreds and can now be had for $20.00 if you can find one (wow, aging myself there).
I really like the comment that if a book seller can make something like this then anyone can.
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