"What people don't realise when making cloned products is that this diverts money into knock-off merchants' pockets rather than our licenced distributors (for which we take a licence fee)."
In other words, they can't (or won't) sell at a competitive price. I'm not sure if this is a sad situation or not, as this will probably be the beginning of the end of the RPi dominance in the SBC market. I don't hate the RPi Foundation enough to hope they fail, but I'm not going to be shedding any tears.