As a developer of custom hardware and software, I'd LOVE to make products in this space. However:
1) Most people are trained to look for cheapest prices for devices, which are (for the most part) made in third-world sweatshops.
2) To provide a competitive price, you have to manufacture in volume in third-world sweatshops.
3) Due to lack of functioning IP protections in third-world countries, manufacturing there means instantly creating many competitors you cant compete with.
4) If you're willing to give up most of the world markets, you can still only compete against imports by spending lots on lawyers for ITC import games.
In their defense, "cloud" components provide a way to monetize the product in a manner somewhat resistant to third-world knockoffs and late shift runs to your competitors, as well as provide a user-friendly front end that you can tune without requiring the customers to update software, which is always a nightmare. That said, there is NO moral defense against the wholesale "all your data belongs to us, we can sell anything to anyone as long as we anonymize (sic) it" games that are played today. That said, for most modern corporations there are no such thing as morals.
I'm not aware of realistic ways to bring such products to market that are price competitive AND can provide sufficient income stream to recover initial investments, cover ongoing operating costs for a small team, and turn even a modest profit. Not in this world.