If you don't see this doing well, look around what kind of new-in-the-box phone $115 off-contract will buy you. If you find something other than five year old Android 2.3 phones or the Nokia Asha 501, then I must've missed something.
And there are lots of people on this planet who A) use a prepaid phone and B) have a phone budget around $100.
The nexus 4 is a quad core power house the will blow the doors off this pos phone and cost 199 brand new and unlocked right from the Google playstore
You also get a 720p HD display
Then they can buy the Nokia Lumia 520 that is only $99.
Hands down, the best low budget smartphone you can buy right now. If you can't afford that price, then you don't need to be using a smartphone.
that looks like a giant 3" screen
...there literally looks like more bezel than screen