Fixed that for you, 1/3 of android devices are still trapped <= 2.3
You should also revise "These phones represent a fraction of the overall android market" to "These phones represent the majority of the overall android market."
In markets where handsets are subsidized, it's no cheaper than an iPhone...
And around here, no one has cheap Android handsets - it's all Galaxy S4s, HTC Ones, and Note 2/3s...
Price is also part of the buying decision making process, e.g. choice.
The insinuation that always seems to follow this line of thinking is that the choice and popularity is made on technical merit alone.