Software/music/movie pirates usually fall into very few categories:
* never willing to pay for it
* willing to pay, not willing to put up with current and known barriers
The first category should never be assumed to be a lost sale, however the second could be assumed a lost sale.
The simple explanation would be that Android users pirate because piracy is trivial. Other more nuanced explanations may be that Android users are cheapskates, or hold strong beliefs against paying for software. I'd like to be charitable and assume it's just because downloading APKs is easy.
* Cheapos. Won't pay for it unless it is the only way to get something that they like. (it's hard to find pirated copies, the risk (legal, malware etc) is high etc)
He can advertise on being a reputable and established source of high-quality food, while you cannot do such a thing without lying.
If you hand out free hot dogs, you might go through five thousand in a day. If you weren't there, the guy selling hot dogs might sell five hundred. He certainly might sell less when you're around than when you're not, but you absolutely cannot point to the 5,000 people who took your free dogs and assume that they are all lost sales. The quantity of people who took your free dogs is completely irrelevant. All that matters is the delta between the seller's sales with and without you, which is unrelated to the number of people who take the free option.
It's tough to convince someone to buy the product that you offer when someone else is offering it for free.
If they weren't going to purchase the product anyway, how is it a loss? If anything, it's additional word-of-mouth advertising at no cost.