That's often how it works.
One company designs a product; demand for that product is then demonstrated to be high even at a high price point.
Another company makes a cheaper version of it--partly because they didnt' have to do the R&D, they just copy it; partly because they often use less-expensive parts with either lower specifications or are cheaper because the parts themselves are actually clones / counterfeits (by other companies) of the parts or types of parts used on the original. They sell it for less than the original, and thereby sell even more of them.
Another company takes the cloned version and copies it, sometimes taking out "extra features" that might save a bit of money (sometimes those are not extra but actually necessary parts of the design, so the device becomes less reliable than the previous versions), using even cheaper parts, even less QC, etc.
Eventually this process reaches a point where a significant number of the product don't even work right (or at all) right off the production line, or die immediately upon first use. But those get sold anyway, because it's still money, and if they sell them to dumb foreigners overseas, who is gonna bother paying to ship them back?
Also, at any stage in the cloning process, it may not be an exact copy--they might change all sorts of things, either because they want to make it cheaper, or because they think they're improving it, etc. They might even actually do so, and sometimes a product that is actually significantly better than the original will arise, even though it's cheaper.
I'm sure this process happens in every manufacturing-capable country around the world with different types of products.