I bought[1] a brand new mobile / cell phone today. £4.95 ($8 USD) which includes the phone, the battery, and a charger. It's all neatly packed, things in bags etc. it's not on a contract.
So it's possible for huge multinational companies to use economies of scale to make, ship, and sell cheap things.
I'm not so sure that small companies have the same economies of scale - especially for things which require being built to safety standards.
[1] Buying it took about 10 minutes. I can't quite work out how all the people in the chain manage to get paid from an $8 phone.