Not sure about that. Perhaps not sold at a loss in terms of bill of materials right now (since they have been in production for some time they probably brought the price down), but that doesn't account for the labor costs (developers, support, etc...).

All e-book readers are subsuidized by book sales. Amazon would be mad not to do it that way. They are a goods company not a hardware company.

They are also manufactured in much much larger runs, thus bringing down their manufacturing price significantly.