> they make too many different things to really make a few great things

While true of a company like Samsung I don't think this explains the lack of a small iPhone. Apple is only going for simple relative to someone like Samsung. They now have FIVE current models, spanning what is effectively two screen sizes (but actually four, which is worse, because now you're spreading yourself across FOUR form factors minimum.)

So even Apple isn't playing by the "too many different things" rule. In reality they could accomplish all this with two models: a big one and a small one. Add in a "mini" size and now you have three models, plus much better variety.

I won't quibble about what is best for Apple's bottom line though; I assume they know better than me. But I will quibble about neglecting what people are asking for while giving them things they aren't asking for.

> Small phones are also difficult.

No, they aren't. It used to be that big phones were difficult. Then screens got cheaper, and now they choose BIG every. single. time. They don't choose big because it's easy, they choose it because it sells better.