The fact they made it possible is impressive in itself. Sure it’s not competitive for the latest games or such, but society is more and more reliant on smartphones, so having a local option is valuable in itself.
It’s a bit like countries making their own planes instead of buying the F-35, which is better and cheaper. They looked stupid at the time, until Trump came back and it turned out strategic autonomy had value.
As for the price, probably it is due to small production ; but also simply underlines how we got used to not paying the “true” price of things, by moving production to places with cheaper costs & labor.
To add to what you’re saying, the Weimar republic was not a really a democracy when Hitler got in power; it was already ruled by decree, with a reactionary minority (Hindenburg, Papen, Schleicher and al) aiming to ignore parliament and preserve the nobility.
In early 1933 a German observer might have hoped the authoritarian trend was just a temporary thing and the presidential clique would have to bend to the parliament eventually, since they were continually losing support.