Those are hugely affordable prices when compared to the $199 Google Nexus 7 or the $329 Apple iPad mini. Moreover, some recent Chinese tablets are near perfect copies of the originals. Still, that ferocious competition between Chinese white-box manufacturer trims their profits to very narrow margins.
At that level, manufacturers are doing whatever they can to differentiate. Some rely on services like offering TV on their devices, and others tweak hardware to be compatible with say PlayStation for gamers. In either case, upcoming $50 tablets from China seem like the perfect gift for regular people who don’t crave an absolutely no-compromise performance.