How low can cost go down to?

This is to compliment my Meizu article and is more impressionistic than precise.

How much do they pay workers? In our school, the cafeteria pays students a startup wage of $12 per hour. In some major part manufacturing factory for Nokia, I heard manual workers are paid RMB 8 which is about $1 per hour. And they use the same machines etc. from Nokia.

I once read an article on how much does it cost to produce a MP3 player in China and the conclusion is 100 RMB for a very good quality one which is around $12.