If you look at the Android phones being sold in China, Africa, etc. they are not phones like the Galaxy models. They are basically phones that are just steps up from feature phones.
China actually has some pretty nice android phones that are on par with the iPhone 5 or the Galaxy S3.
The Xiaomi M2 has a 1.5GHz quad core, 2GB ram, 720p screen, and it runs MIUI 4.1 (Android 4.1 with a custom chinese rom). It costs $310, which is less than half the price of an iPhone 5 (and it has better specs than the iPhone). The Xiaomi M2 is basically on par with the newly released Nexus 4, but it costs $50 less.
There's also the Oppo Find 5 which will have a 1.5Ghz quad core, 2GB ram, 16 or 32GB storage, 1920x1080 resolution (1080p screen!), 2500mAh battery, and it runs Android 4.1. It might also be the thinnest smartphone to date.
They have cheaper phones too, like the Beidou Little Pepper which is only $156, and it has a 1.3Ghz quad core, 1GB ram, 5MP camera, 800x480 screen, and runs Android 4.0. There's also the older dual core variant for only $110.