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They're gonna want to recoup all their investment as fast as possible. And, with the typical pricing of "audiophile" players being fairly steep, having one that's also a phone in function, the only way to do that is to price higher than they can their other products.
I could be wrong in that prediction, of course. But I don't see them trying to step into the phone market at the budget range.
Fair enough, very valid points, especially since this is unlikely to be (completely) a rebranded generic aliexpress phone. And to be fair some digital audio players cost an insane buck (see FiiO M series), so if this is kind of a middle ground, the price could be steep.
And to be fair they did put out an astronomically proced keyboard with a dac inside that had PCB drift issues.