MicroChip direct now offering Free shipping on Atmel parts

Got this e-mail today from MicroChip.com, which took over Atmel:

Why choose microchipDIRECT for Atmel products? Easy.





- Factory Direct Pricing and Support
- Largest Inventory of Microchip Products, over 200 Million Units in Stock
- Special Pricing for High Volumes
- Schedule Orders up to 12 Months in Advance
- Offered in Most Countries
- Monthly Development Tool Deals... and More

As a welcome gift, we would like to give you FREE shipping off of your next order. Apply the following coupon code: WELCOME03 at checkout. Expires March 26, 2017.




http://www.microchipdirect.com/ProductSearch.aspx?keywords=atmega328p-au
5000+ pieces of Atmega328P-AU are $1.46 each.

So how can a Promini sell for $1.99? I count 17 other components + PCB + headers. Somebody's gotta be losing money here.
https://www.amazon.com/s/ref=sr_st_price-asc-rank?keywords=arduino+pro+mini&rh=i%3Aaps%2Ck%3Aarduino+pro+mini&qid=1489529927&sort=price-asc-rank

$1.99 + shipping is way more than I'd ever pay for a Pro Mini clone from China/Hong Kong. You actually could make a profit on that because it won't cost anywhere near what they're charging to ship it even in the US and certainly not from China. But how about $1.59 w/ free shipping?
https://www.aliexpress.com/item/New-Pro-Mini-atmega328-Board-5V-16M-Replace-ATmega128-For-Arduino-Compatible-Nano-hot-sale/32670535538.html

I suggest a controller costs 10-15 cents or less to make.

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What do you expect from the Land of Overcapacity? China has a lot of zombie manufacturing companies that aren't making money, but are just making product to keep the factory running and the hands busy. I suspect a lot of the cheapo electronics are that kind of thing

I think the shipping may be subsidized over there, too.

Free shipping, must be subsidized.

So when the item gets into your country and then delivered, your postal service gets paid how?

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Aren't there international laws against dumping products below cost into other countries?

It's not like these are new prices... pro minis have been lower than bare chips for a long time.