The salaries are really low here, most sales seem to be 100-200 Euro cheap Androids.
The Androids are often used for specific applications/niches (e.g. in taxis and by poor students). If buyers had money, they'd at least get Androids with better screens.
I believe the market for paid Android apps here is more or less nil.
(I hope the cheap Androids aren't used for banking etc, considering the lack of security updates.)
In short -- these cheap Androids aren't really competing with iPads. People just can't afford better (or they are used for a specific application 20 minutes a day).
All that said, I still would consider to switch from iOS if I could get better Emacs support with external keyboard than a terminal (which work on iOS now).