I actually found this being sold at 780 renminbi ($120) at the Shenzhen Electronics Market the day after I bought it. So the price for this is actually as low as that. Also see my video review of the similar but even cheaper $87 FG8 3.5" capacitive MTK6515 HTC Desire clone. And my video interview with Karasnn.com the probable manufacturer of this $120 MTK6516 Hero H2000 smartphone.
Here are the specs for this cool $120 Android Powered iphone4-copy:
MTK6516 ARM9 460Mhz + 250Mhz DSP
Android 2.2 Froyo
2GB Flash storage, MicroSD expansion
3.5" HVGA Capacitive touch screen
GSM/GPRS/EDGE Dual-SIM card slots (no 3G)
WiFi, Bluetooth 2.1, 3.5mm stereo heaphones, 2 Megapixel back-facing, 0.3Megapixel front-facing cameras
I bought one of my H2000 from Sinoteck for $149 (969 renminbi) at http://bysino.net a partner of http://dhgate.com (they were exhibitor at the Shenzhen Electronics Fair) and the other I bought for $131 (850 renminbi) on the Shenzhen electronics market, then finding it being sold for $120 (780 renminbi) the day after.