So how will it make money down the road? In volume? Probably not.
Munster doesn't say, but we'd guess Amazon thinks it can earn back those $50 (and more) through sales of books, apps, video, and other purchases on Amazon.com.
Also, this is Amazon, not Apple, we're talking about. It has a history of losing money in the short term to make money in the long term.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.