They don't make competing products and denigrate the products of their competitors.They should stick to services.Sans the hardware, yes. However, they're trying to buy loyalty by offering these products below cost while their investors support the initiative. Which said investors obviously aren't into supporting as the drop off today shows.
And not as highly (or ever) advertised. And not as highly discounted. Probably not as technically innovative in comparison to their bigger brethren. And therefore not as highly sought after. And with Android being made specifically for bigger screens likely not as highly usable.