I believe it's for countries that value cost all the time, not just those of us who need a cheap phone. I don't think I'm explaining this properly.
Markets like Thailand, Philippines, Korea to a lesser extent, are interested in having cheap phones, but when that's ALL that they're going to have, they do want something nice, they do want that premium feel.
These are the same places that Nokia still has massive market share in feature phones, and this will only help advance those markets, I believe.