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Like almost any electronic device today, I'm sure the RedFly has a processor. It needs one to drive the I/O at the very least. If you want proof, turn the RedFly on without a device connected and you'll see a graphic on the screen and the system tray will pop out (and then disappear). That requires a processor.
Likewise, it also requires a minimal amount of internal storage to (at least) store the graphics.
The basic computing power is provided by the attached device, of course.
Steve