I think this is for gullible tourists indeed, who don't haggle down the price because $100 USD is cheap compared to all the expenses they had. A regular citizen would know it's a liePhone and would haggle hard or go where they sell them cheaper.

Anecdata: I was offered one of these liePhones at a Chinese airport, before going through the controls. They are very convincing at a glance, and the dudes offering them wear business suits, making it seem like it's an emergency sale. Airport police lets them be as long as they don't bother people too much.