Costs are coming down. This is what a retail price of 999 yuan ($160) gets you:

"ZTE U950 smartphone packs a 1.3GHz Tegra 3 chip, 1GB of RAM, 4GB of internal storage and a 2,000mAh battery beneath the 4.3-inch display."

http://www.engadget.com/2012/10/29/ztes-u950-tegra-3-phone/