From another article:

"On the hardware side of things, there seem to be enough modern features to satisfy users who fit the profile of desiring an in-between smart and dumb-phone solution. It supports global LTE cellular connectivity, Wi-Fi, Bluetooth wireless, and even GPS. At the heart of the Callback is a MediaTek Helio G81 SoC, with 4GB/64GB on board. A 32GB microSD card is included to get you started, too."

https://www.tomshardware.com/phones/commodore-announces-linux-based-flip-phone-with-no-social-media-no-browser-the-callback-8020-will-be-available-in-five-retro-colorways-starting-at-usd499-runs-99-percent-of-android-apps

To me, that's pretty low spec for $500 all things considered. Now, there is a price to privacy and the fact they're not monetizing data is a pretty huge incentive. So, probably worth the $500 after all.

There's nothing on their site that indicates it's not being produced in China. Their Commodore 64 Ultimate is produced in China, so I assume the phone is as well.

Does it say in the article where it’s manufactured? I assume that extra cost is mainly to ensure the profit is still there