The Lumia 520 is the single lowest spec WP8 phone and from GSMArena -
Card slot microSD, up to 64 GB
Internal 8 GB, 512 MB RAM
And from your article -
Windows Phone 8.1 is now accounting for 65 per cent of Windows Phone app downloads, with Windows Phone 7 at under five per cent.
The most popular Windows Phone device is the low-end Lumia 520, which accounts for more than a quarter of all app downloads. Devices with fewer than 256MB of RAM dominate downloads with 71 per cent of the total, suggesting Windows Phone's most active users are using cheaper handsets.
Now, I am merely a programmer so obviously the "industry analyst" who supplied your figures knows more than me (quiet at the back), but since the only Windows Phones with 256MB of RAM (and there are exactly zero Windows Phones with "fewer than 256MB" as you state) are WP7 phones*,the statements are wholly contradictory.
I find this remarkable, if true.
It's not true though, is it?
*the only one I can think of is the Dell Venue Pro with the slide-out keyboard. Good idea, canned early because Dell only sold about 25 of them.