I bought a Motorola Flipout in early 2011 for about $200. I'm still using it. Ok, it's Android 2.1 and I don't have many new apps running on it (but the recent google photos works fine !)
But that's not a surprise that they're slowly gaining market share : most media only talk about iPhones and similar Samsung devices, because that's what carriers and retailers only want to show (and usually hide real prices behind a monthly plan).
Cheap smartphones have literally boomed here in France since in 2012 a new carrier (Free) decided to offer very low cost plans with no phone, showing people that they were actually paying their $600 smartphone at least twice with their monthly plan with hidden costs.