It's supposed to have a 1440p screen according to polygon. God only knows what "stand alone" means but the price doesn't seem totally insane. It simplifies it a great deal to take out the design constraints of a phone and the screens and processors (for basic streaming video over wifi) have been around for a few years now.

Still, it is surprising that the price would jump so far down from the price of a cellphone. I don't think it's a loss leader but I really doubt they have much of a profit margin. If that's the case this may be a bit of a gamble on VR being as massive as everyone (including myself) hopes it will be.