$125 selling price doesn't imply a $5 case/display/switches, that company was offering a variety of different instruments all with the same case/display/switches, but with a large difference in price.
The display is probably custom, 1000 units of a custom display is not pretty, I have no idea what volume these guys are doing, lets assume
1000's.
I suspect the case/display/switches/assembly are about $35, with the electronics/sensors in the lower priced instruments less then $10,with a 3x parts markup for selling price. So the lion share of the cost is the case/display.
For the $500 instruments the lion share of the cost is the electronics/sensors, reusing the case/display/switches.
The only way display/case/switches cost less then $5 is when you make millions, like pagers, cell phones, electronic toys etc, here I am of course assume China manufacturer not US/Germany.