I have no idea how much it costs to produce this phone, but if you asked me how much it should cost, I'd say about 200 USD.

That's the hardware. How much do you have to add on to cover the designer and software people's salaries and the CEO's profit, if you're only going to be able to sell 5 phones?

If all you sell is 5 phones, or even 500, the price doesn’t matter. A lemon is a lemon.