Right. They were really simplified, and up against US economies of scale that meant less simple machines could be made at competitive prices.
I think Timex's main projection was that the Sinclair machines would be affordable over the long term. But I guess in the USA, the competition became cheaper much faster than they expected.
Over in the UK, as well as more expensive imported Commodore machines, the native competition included the very expensive BBC Model B and its cousin the Acorn Electron, the beloved and excellent Dragon 32, the quite inexpensive Jupiter Ace (think ZX81/Spectrum but running FORTH natively!), and Tangerine's Oric-1, which was adorable, and as with the Amstrad CPC sold well in France, expanding its market size a bit.
The Spectrum 48K did well against them on price-performance, though the Oric-1 was often cheaper and is arguably the better device.
In the USA, much larger economies of scale meant that the C64 was more affordable, and for cheaper machines the Spectrum was up against the VIC-20 and Atari 400, and even Mattel wanted a chunk of the low-end in that same period of time with the Aquarius (which is similarly simple Z80 stuff).