I met an one of the entrepreneurs behind the jitterbug(now known as a different company). Initially they focused it at parents wanting phones for their children, but now it's mostly for the elderly.

He said they failed at their market research - they tried to make something that appealed to parents, but neglected to see what kids actually wanted(to have things like the adults do). American kids knew it wasn't a real phone, and rejected it. Their parents then got them a flip phone instead of a "kiddie phone".