2 thoughts:
He isn't saying anything except "margins are razor thin". Hardware companies have made money on razor thin margins in the past, and will continue to do so. Razor thin margins don't mean "0 margin".
He seems to be ignoring the costs of distribution. The reason the tablet is $49 is because you can walk to the factory from where it's being sold. Try to take advantage of that price and import it to the US and you'll find the cost is higher. I don't see why it's amazing that you can buy a cheap tablet at wholesale prices, that's obvious
Distribution is usually via Hong Kong at something of middle man markups, but still cheap. The last time we ordered this way, the item arrived declared for customs as 'Contents: Gift'. I'm not sure what the preferred weight limit is for them.
There's a sea of knockoffs over there, some terrible, others very good.
He seems to be ignoring the costs of distribution. The reason the tablet is $49 is because you can walk to the factory from where it's being sold. Try to take advantage of that price and import it to the US and you'll find the cost is higher. I don't see why it's amazing that you can buy a cheap tablet at wholesale prices, that's obvious