"This" "it" difference

[Rachel Adams]

Hello.

Is there any difference between 'This phone is cheap'. And 'It is a cheap phone.' Between 'this' and 'it'.

 

[PeterCW]

Technically no but there are subtle differences of interpretation in colloquial use.

To me, as a native BrE speaker, your first version suggests a bargain; the second suggests that the quality matches the low cost.