Overpriced relative to what? Phones that are produced at scale by the millions and so can have much lower prices due to economy of scale? That's going to be the case with anything produced in low volumes, but that doesn't mean they are overcharging for it.
Most tech products are sold at somewhere around 3-4x what it costs the company to make them.
Back when I designed phones, there was a minimum order of 50K units before an OEM would talk to you, and even then, they usually had a like-unit already in the production pipeline so they wouldn't have to retool everything.
That's the hardware. How much do you have to add on to cover the designer and software people's salaries and the CEO's profit, if you're only going to be able to sell 5 phones?