Not all "Senior Citizens" are necessarily on a budget. Many are, and many communities are "retirement communities" built around seniors being on a budget.
Where I live, there are a lot of seniors. Very few are on a limited budget. I met an elderly couple who were very much tightwads with their money, and lived as though they were on a very tight social security pension. Turns out, they live in a $10 million dollar home and own their own lake. They are very well taken care of. You'd never know it by the way they dress or shop or talk.
Housing where I live is very high. Homes that would be listed under $200,000 just 50 miles away go for over a million here because of the value placed on "where" we are.
I met a lady in Goodwill the other day (Goodwill is a charity organization that operates a string of thrift shops to help those less fortunate.) She is clothes shopping in Goodwill, and pulls out a brand spanking new Samsung Edge. You know, the one that just came out. I struck up a conversation with her. My daughter did something cute and I snapped a quick pic with my Lumia 640. She made mention that she hadn't been able to figure out how to get the camera to work yet. I asked her if she didn't understand how the phone works, why did she buy it? "Because it was so pretty." Turns out, though the course of the conversation, she had always had iPhones because they were pretty. Now, she thought this one was prettier, so she switched. Just like that. No Apple loyalty, no blind following the iPhone, she just wants the prettiest phone, and she paid cash up front without a contract. Turns out this was someone that owns millions and millions in real estate, has a monthly income higher than what most people here will earn in 20 years. She can afford pretty.
Maybe that's what Microsoft needs to do. Make the phones "pretty and shiny" and people will come. She doesn't use apps. She doesn't use video calling. Phone calls and texting is all she does. A feature phone would have been fine for her. But feature phones, according to her, "just look ghetto." Her words, not mine. Apparently she's never been to the ghetto. I've seen a LOT of iPhones there.
Yes, some seniors are being taken advantage of. So are people in their teens, twenties, thirties, forties, etc. If these sales people don't take advantage, they don't get to keep their job because they won't be making the quotas the company requires.
People who have become slow with their thinking due to advanced age, and not all get slow thinking, but a few do, those are the biggest targets. Weak minded people of any age are also big targets. There are a lot of those. Beware of sales people who use Jedi Mind Tricks.