Defining a market segment based on merely the screen size of the device?
Nope, based on price which is a major criteria for how premium anything feels.
You know just like lots of people do around here all the time: ''Haha, people buy other stuff than Apple because they can't afford the real deal, nothing great is ever cheap!''
A cheap phone like this has nothing to do with 'premium' at all. It is trash for the masses.