It's locked to a pay pr. minute deal, so if you use it as a smart device on wifi only you never have to pay anything. Great for people with very limited funds and no access to the internet in other ways (assuming they can get access to a wifi, which you at least can do many places in large cities).
You're right, it's still an amazing deal. I'm just pointing out that it likely can't be produced and sold at retail for a profit for $10.