It has a 528MHz Qualcomm MSM7200A with 256MB of RAM and 512MB of ROM, according to PDAdb. Looking at the spec sheet, it is approximately as powerful as the processor in the Droid Eris (MSM7600, which I believe is a CDMA variant of the 7200A - the CPU and GPU cores seem the same) In my opinion, it is a bit underpowered for a new device, but this seems to be a lower-end device, so it's not out of the ordinary. Unfortunately, looking at the video, it seems to perform about as well as my Motorola Droid underclocked to 250MHz (actually, the app drawer lag was about like my Droid at 125MHz). I also find the completely exposed keyboard to be a horrible idea, the keys are not protected at all. I have a strange feeling these phones won't last long in people's pockets.