While I don't normally agree with dismissing something from the source -- in this case Apple Insider -- the way that the article digs to try to generate their manufactured numbers borders on comical. Secondly, the metric that it is "junk" (the article's word) because the ASP is $200+ is asinine, if you will. As is the notion that such makes it a "feature phone" (where ASPs were in the LOW double digits).
A $200 device in many Asian markets is a decidedly premium device. The Xiaomi Redmi, for instance, is a $139 (retail!) decidedly decent mid-range device. In no way does anyone have to design down at all for devices like that, the notion being absurd.
Androids are penetrating markets that were never penetrated by PCs or the web or even residential electricity.
http://appleinsider.com/articles/13/11/12/idc-data-shows-66-...
And it turns out I misrepresented the fictional statistic. The "real" number is 66%. Though I suppose if you count older mid tier models (this counts sales) still in use, 80% might be pretty close.
IMO you still need to design dow a bit, especially for data poor users. Also smaller screens. In some cases I think craigslist is the thing to emulate.