That is clearly not the case with Amazon. "Just increases their profits" is pretty much the only thing that matters. Dominant market share comes much later, if at all. Dominant market share might even be a bad thing, if attaining it requires a race to the bottom. Most companies would (and should) prefer to sell a million devices with decent margins than 10 million devices with little or no profits. Amazon is known for pursuing market share at the expense of profits, but that's often not the best strategy and they can be excused for not taking it this time.

It's also better from a risk management perspective. For the first iteration of a device like this, it's less risky to try to sell a few of them at reasonable margins then to try to sell a gazillion of them at razor thin margins. The price of failure is far less, and depending on how this one does, then the next time around they can start adding cheaper models and gradually expand the user base. Or not, their choice. It's not always worth it.