Is there even still a market for such devices? While $200 dollars may be a lot less than an unlocked iPhone, its certainly not cheap. Plus you can get an iPhone 6 at that price if you are willing to get into a contract.
Kids can't get into contracts. People with bad credit can't get into phone contracts. Sure lots of parents buy their kids smartphones now but a lot can't afford to do that. I still think there's a big market for this. Plus developers - much cheaper to buy a lot of these for a team than iPhone's.