I have never had a Magic Yoyo and really don’t care to buy one, but why are they so cheap?
Because that’s about what a decent yoyo costs to be produced
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they are cheap because they are chinese made and sold from china. They use a nonstandard cheaper aluminum alloy for most models except the n12 shark which I believe is real 6061 and is more expensive. The real reason they are cheaper is because the labor is cheaper in china and most seem to be sold straight from the source not a third party. My $0.02
I need to find that thread where Chinese economics was discussed.
Edit:
http://yoyoexpert.com/forums/index.php/topic,54954.15.html
Scroll down to YoyoGeezer’s post.