They're obviously going to keep pushing lower and lower price points. This is just the beginning. But the point is that android phones you get for 150$ or less off contract are rough, very rough. If you can offer someone a phone that's a wee bit more but that is so much more performant, you can sway them over. But that said, this is just the beginning. You'll see Nokia push even lower price points later.
Actually, smooth performance is something very few consumers in the developing world actually care about. I bought an android phone for ~$130 in 2010. It ran eclair. Now it runs the latest version of gingerbread. I never really felt it's performance was a deal breaker at any point. And consequently, the galaxy Y duos, a gingerbread phone that retails for ~$160 today, runs pretty smooth. Here's a video of it http://www.youtube.com/watch?gl=US&v=qZdAbI0ZMuE It's performance is really good enough and something most consumers would buy.
