Its not just a matter of a product being profitable. Its about opportunity costs. Why the hell would Apple sell a $99 phone at 4 inches when they can sell the same person a $299 phone? What you are asking Apple to do is become Samdung = making tons of different models. And look what happened to Samdung's profits beause of their lack of focus. Apple will NEVER sell a $300 off contract phone. They dont make JUNK. They are NOT Amazon.