Try making a few of these and you will be the hit of the show for sure.
How do they do this for so little money.
http://contentz.mkt7842.com/ra/2016/40466/12/27414653/hero8638.jpg
Check to see what the MOQ is to get the $1.89 price.
As low as usually means, more than you will ever use.
I think he's looking at it from more of a coolness factor. It is for all intents, pretty dang sweet.
Yeah, it'll cost some cash to put a LED, a resistor, a battery and it's pretty easy to work a switch into that.
With that said, it's not hard nor is it costly to get those nowadays and the the cost and the increasing ability to come across those are getting better and better all the time.
Now, to reference it from your point, yeah, it's going to take a lot of units to get it down to that price, no ifs, ands or buts about it.
What it makes up for in sales through advertisement whether through sites, or word of mouth, will probably make up for that cost. After all, that's what they're in it for. I could very well be wrong, but, I think they might have stumbled onto something that we as penturners, will have a use for.
I've been known to be wrong many times before and I may very well be wrong about this, but just the coolness of it, has my interest piqued.