In benchmarking that price point as the default value for nearly all books in the Kindle Store, Amazon was discounting to a loss, presumably to build adoption of the Kindle platform.
Some analysts believe this dominance could lead to Samsung looking at how it can assert far more control over the operating system - perhaps in a way similar to Amazon which, with its Kindle tablets, launched its own curated app store for its users to buy from instead of Google's default shop.