It’s not just about the cost though. They’re inferior to pretty much any other mid-range or high-end smartphone too. Expensive but good would be fine. Cheap and mediocre would be fine. Expensive and mediocre though? Nah.
My £250 used phone has a faster processor, more RAM, better screen (higher resolution, brighter, bigger and higher frame rate), and a higher capacity battery with faster charging. It’s a mid-range Xiaomi from a couple years ago, not a high end or flagship phone.
They should take notes from pinephone. Offers something unusual at a low cost. Since enthusiasts eat that stuff up you get extra help with software and ROMs too. Yes it’s low spec, but it’s good enough for enthusiasts to play with and is of good value as the price reflects the quality.